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 vast portfolio of consumer brands ranging from Cheez-It to Pop-Tarts.
Kellanova was created last year when Kellogg Co. split into three companies. Chicago-based Kellanova is home to a number of 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 deal at $35.9 billion.
The deal is expected to close in the first half of next year. Once completed, Kellanova will become part of Mars Snacking. Its headquarters will remain in Chicago.
“The Kellanova brands significantly expand our snacking platform, enabling us to meet consumer needs even more effectively 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 weighing on consumers and prompting many companies to set price caps. Economists say many consumers appear to be returning to pre-pandemic norms, when most companies felt they couldn’t raise prices significantly without losing customers.
Kellanova shares rose nearly 8% before the open on Wednesday.
