Business
Mars, whose brands include M&M’s, Snickers and Skittles, is buying food company Kellanova in a deal worth nearly $30 billion, giving it access to brands such as Cheez-It, Eggo and Pop-Tarts.
Mars, whose brands include M&M’s, Snickers and Skittles, is buying food company Kellanova. AP Photo/Matthew Mead, File
Mars, whose brands include M&M’s, Snickers and Skittles, is buying food company Kellanova in a deal worth nearly $30 billion, giving it access to a huge portfolio of consumer brands from Cheez-Its to Pop-Tarts.
Kellanova was created when the Kellogg Co., founded in 1906, was split into three companies. Kellanova, based in Chicago, has many brands, including Pringles, Town House, MorningStar Farms and Rice Krispies Treats. It had net sales of more than $13 billion last year and has about 23,000 employees.
Mars Inc. said Wednesday it will pay $83.50 per share in cash. The company estimated the total value of the transaction at $35.9 billion.
The deal is expected to be completed in the first half of next year. Once completed, Kellanova will become part of Mars Snacking. It will remain based in Chicago.
“The Kellanova brands significantly expand our snacking platform, allowing us to even more effectively meet consumer needs and drive profitable business growth,” Andrew Clarke, global president of Mars Snacking, said in a statement.
Shares of Kellanova rose more than 8% before the opening bell on Wednesday.
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