Current:Home > NewsSnickers maker Mars to buy Kellanova, company known for Pringles, Eggos, in $36B deal-LoTradeCoin
Snickers maker Mars to buy Kellanova, company known for Pringles, Eggos, in $36B deal
View Date:2024-12-23 15:21:21
Food company Mars Inc. announced on Wednesday that it has agreed to acquire Kellanova, a global giant in snack, cereal, and noodle manufacturing, in a whopping $35.9 billion deal.
The family-owned company −home to Snickers, Skittles, and M&M's − will pay $83.50 per share in an all-cash deal for Kellanova (K.N). This opens a new tab, representing about a 33% premium to Kellanova's close on Aug. 2, before Reuters reported that Mars was exploring a deal for the Pringles maker, according to the outlet. Other notable brands under the Kellanova umbrella include Eggo, Cheez-It, Club Crackers, and Pop-Tarts.
“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," Poul Weihrauch, CEO of Mars, said in a statement. "We will honor 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. We have tremendous respect for the storied legacy that Kellanova has built and look forward to welcoming the Kellanova team.”
Shares of the company rose 8% to $80.45 before the bell, Reuters reported.
More money news:Capital One is acquiring Discover: What to know about the $35 billion, all-stock deal
The deal comes as customers seek less expensive alternatives
The deal for Kellanova comes as sales growth at U.S. packaged food companies including Kraft Heinz , Mondelez (MDLZ.O), opens new tab and Hershey (HSY.N), opens new tab have taken a hit as budget-strapped customers hunt for cheaper, private-label alternatives to pricier branded items. This has spurred dealmaking in the packaged food sector as companies seek scale to weather the impact of price inflation and weight-loss drugs weighing on demand.
The deal dwarfs Mars' $23 billion takeover of Wrigley in 2008, as the recent transaction is considered the biggest in the packaged food industry. The acquisition is not expected to go through too many antitrust roadblocks due to the limited overlap between the two companies' offerings, legal experts had told Reuters.
Kellanova, which split from WK Kellogg Co (KLG.N), opens new tab last October, is rooted in a salty snacks business in the U.S. and around the world, and selling cereal outside of North America. WK Kellogg was left with the North American cereal business of Kellogg, the original parent company.
The Wall Street Journal reported the terms of the deal earlier on Tuesday.
Kellanova brands
Here's a full list of all of the brands under Kellanova:
- Austin
- Carr's
- Cheez-It
- Kellogg's Club Crackers
- Kellogg's Eggo
- Kellogg's Graham Crackers
- Frozen Breakfast
- Morning Star Farms
- Kellogg's Nutri-Grain
- Pop Tarts
- Pringles
- Pure Organic
- Kellogg's Rice Krispies Treats
- RXBar
- Special K
- Toasteds
- Town House
- Zesta
Contributing: Anirban Sen, Reuters
veryGood! (2)
Related
- California Gov. Gavin Newsom will spend part of week in DC as he tries to Trump-proof state policies
- Retired Yankees announcer John Sterling was so much more than a friendly voice on the radio
- GaxEx Global Perspective: Breaking through Crypto Scams, Revealing the Truth about Exchange Profits
- Person stabbed after argument on LA bus, one day after new protective barriers for drivers are announced
- 24 more monkeys that escaped from a South Carolina lab are recovered unharmed
- Mexican man wins case against Cartier after buying $13,000 earrings online for $13
- Legendary football coach Knute Rockne receives homecoming, reburied on Notre Dame campus
- Why Meghan Markle Won’t Be Joining Prince Harry for His Return to the U.K.
- Pentagon secrets leaker Jack Teixeira set to be sentenced, could get up to 17 years in prison
- World Central Kitchen resuming Gaza operations weeks after deadly strike
Ranking
- Texas’ 90,000 DACA recipients can sign up for Affordable Care Act coverage — for now
- Ex-NSA staffer gets 21 years for trying to sell defense information to 'friends' in Russia
- How countries are using innovative technology to preserve ocean life
- Tony Awards: Which Broadway shows are eligible for nominations? When is the 2024 show?
- Klay Thompson returns to Golden State in NBA Cup game. How to watch
- Over 80,000 pounds of deli meat recalled across multiple states due to lacking inspection
- Mexican man wins case against Cartier after buying $13,000 earrings online for $13
- California’s population grew in 2023, halting 3 years of decline
Recommendation
-
AI could help scale humanitarian responses. But it could also have big downsides
-
A Yellowstone trip that ended with a man being arrested for kicking a bison
-
US to require automatic emergency braking on new vehicles in 5 years and set performance standards
-
Travis Kelce's NFL Future With Kansas City Chiefs Revealed
-
Agents search home of ex-lieutenant facing scrutiny as police probe leak of school shooting evidence
-
Inside Kirsten Dunst's Road to Finding Love With Jesse Plemons
-
These Mean Girls Secrets Totally Are Fetch
-
Tesla’s stock leaps on reports of Chinese approval for the company’s driving software