Mars Inc To Acquire Kellanova In $35.9 Bn Deal

To expand globally, Mars, Incorporated, a pet care, snacking and food company is all set to acquire Kellanova, an American multinational food manufacturing firm for USD 83.50 per share in cash, for a total consideration of USD 35.9 billion. The acquisition price offers a 44 per cent premium to Kellanova's recent average stock price and a 33 per cent premium to its 52-week high as of 2 August 2024.

The company in a press release stated, “Mars, Incorporated, a family-owned, global leader in pet care, snacking and food, and Kellanova (NYSE: K), a leading company in global snacking, international cereal and noodles, North American plant-based foods and frozen breakfast foods, today announced that they have entered into a definitive agreement under which Mars has agreed to acquire Kellanova for USD 83.50 per share in cash, for a total consideration of USD 35.9 billion, including assumed net leverage.”

Poul Weihrauch, CEO and Office of the President, Mars, Incorporated said, “In welcoming Kellanova’s portfolio of growing global brands, we have a substantial opportunity for Mars to further develop a sustainable snacking business that is fit for the future. We will honour the heritage and innovation behind Kellanova’s incredible snacking and food brands while combining our respective strengths to deliver more choice and innovation to consumers and customers."

Steve Cahillane, Chairman, President and CEO, Kellanova added that the transaction maximizes shareholder value through an all-cash transaction at an attractive purchase price and creates new and exciting opportunities for our employees, customers, and suppliers. We are excited for Kellanova’s next chapter as part of Mars, which will bring together both companies’ world-class talent and capabilities and our shared commitment to helping our communities thrive. “With a proven track record of successfully and sustainably nurturing and growing acquired businesses, we are confident Mars is a natural home for the Kellanova brands and employees,” he stated.

Notably, snacking is a large, attractive and durable category that continues to grow in importance with consumers. Upon completion of the transaction, Kellanova will become part of Mars Snacking, led by Global President Andrew Clarke and headquartered in Chicago, allowing Mars to bring even more beloved brands to more consumers globally. Mars intends to apply its proven brand-building approach to further nurture and grow Kellanova’s brands, including accelerating innovation to meet evolving consumer tastes and preferences, investing locally to expand reach and introducing more better-for-you nutrition options to meet evolving consumer needs.

Andrew Clarke, Global President, Mars Snacking commented, “This is an exciting opportunity to create a broader, global snacking business, allowing Kellanova and Mars Snacking to both achieve their full potential.

Talking about the transaction details, the company stated that under the terms of the agreement, Mars will acquire all outstanding equity of Kellanova for USD 83.50 per share in cash, representing a total enterprise value of USD 35.9 billion. All of Kellanova’s brands, assets and operations, including its snacking brands, portfolio of international cereal and noodles, North American plant-based foods and frozen breakfast are included in the transaction.

Meanwhile, the agreement has been unanimously approved by the Board of Directors of Kellanova. “The transaction is subject to Kellanova shareholder approval and other customary closing conditions, including regulatory approvals, and is expected to close within the first half of 2025,” as per the press release.