Mars Inc. Announces Purchase of Pringles, Cheez-It Maker Kellanova in Massive Snack Portfolio Boost

Mars Inc., the candy company famous for M&M's and Skittles, has announced it will buy Kellanova in a massive $35.9 billion deal. The acquisition is the largest in the packaged food industry in over ten years.

Mars will pay $83.50 per share in an all-cash transaction, about 33% higher than Kellanova's share price on August 2, before the deal was publicly known.

Mars Inc. Marks Biggest Acquisition in Packaged Food Industry

The acquisition includes well-known brands under Kellanova, such as Pringles, Cheez-It, Eggo, and Pop-Tarts. Mars is adding these popular snacks to its lineup, which already includes Snickers and Skittles.

According to Forbes, Kellanova's board has approved the deal but still needs the green light from Kellanova's shareholders and regulatory authorities. The companies expect the deal to close in the first half of 2025. After that, Mars will integrate Kellanova's products into its portfolio.

This move is part of Mars' strategy to expand its product range. The company has previously bought other snack brands like KIND Snacks and Trü Frü. Mars decided to acquire Kellanova in response to rising cocoa prices and to strengthen its snack market position.

Experts Foresee Minimal Challenges

Kellanova was created when Kellogg's restructured its business in 2022. The reorganization eventually led to two separate companies: Kellanova, which focused on snacks, and WK Kellogg, which concentrated on cereals. Kellanova's split from Kellogg's was completed by late 2023.

The acquisition of Kellanova by Mars follows a trend of increased deal activity in the packaged food sector. Many food companies seek to merge or acquire businesses to remain competitive, especially as consumers turn to cheaper private-label products due to high prices and inflation.

Mars' purchase of Kellanova is the largest in the packaged food industry since Mars bought Wrigley for $23 billion in 2008. USA Today reports that legal experts suggest the deal will likely face a few antitrust challenges since Mars and Kellanova do not overlap significantly in their product offerings.