Mars Acquires Pringles maker Kellanova in a $35.9 Billion Cash Deal

Family-owned candy giant Mars, Incorporated, known for brands like M&M’s and Snickers, on August 14, 2024, entered a definitive merger agreement to acquire Kellanova Co. (K), the maker of Cheez-It and Pringles, for $35.9 billion in cash, including debt, making it the largest deal in the packaged food industry.

Deal Structure:

Under the terms of the agreement, Mars will acquire all outstanding equity of Kellanova for $83.50 per share in cash, representing a premium of 12.08% from the stock’s last close, and an almost 33% premium from when reports of the proposed deal were making rounds.

The transaction includes all of Kellanova’s brands, assets, and operations, covering its snacking brands, international cereal and noodles portfolio, North American plant-based foods, and frozen breakfast products.

Company Profile:

Kellanova is a major company that makes popular snacks and foods like Pringles, Cheez-It, and Kellogg’s cereals. Founded in 1906 and headquartered in Chicago, the company changed its name from Kellogg to Kellanova in October 2023.

Mars is a global, family-owned company famous for its snacks, food, and pet care products, including M&M’s and Pedigree. With over $50 billion in annual sales, Mars is dedicated to innovation and quality.

Deal Details and Timeline:

After the transaction is completed, Kellanova will join Mars Snacking, which is led by Global President Andrew Clarke and based in Chicago.

Upon closing, expected in the first half of 2025, Pringles and Cheez-It will become part of the Mars business, along with RXBAR and NutriGrain, which will be added to the health and wellness portfolio.

Mars plans to fully fund the acquisition using a mix of cash on hand and new debt.

Battle Creek, Michigan will be a key location for the combined organization post-closing.

Kellanova’s current EV/EBITDA (TTM) ratio is 16.77, above the sector median of 11.84.

Last week, Reuters reported that the Snickers maker was exploring a potential acquisition of Kellanova.

Deal Metrics:

For further details about this merger and acquisition deal, please visit the Deal Metrics page:

Deal Metrics for the acquisition of Kellanova Co. (K) by Mars, Incorporated

The Deal Metrics page for each merger or acquisition includes:

• A spread history chart of the merger from announcement through eventual completion or failure.
• Every event as the merger progresses through the expiration of the HSR period, various regulatory approvals, and shareholder votes.
• News and SEC filings.
• A history of deal updates.
• And a whole lot more.

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Editor’s Note: Baranjot Kaur contributed to this article