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-It to Pop-Tarts.
Kellanova was created when Kellogg Co. was split into three companies last year. Kellanovabased in Chicago, houses 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.
The deal comes at a time when rising prices are putting pressure on consumers and puts many companies under pressure to put a ceiling on prices. Economists say many consumers appear to be returning to pre-pandemic norms, when most companies felt they could not raise prices very much without losing business.
Shares of Kellanova rose nearly 8% before the opening bell on Wednesday.