Mars, maker of M&M’s and Snickers, to buy Cheez-It owner Kellanova for nearly $30 billion
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 huge portfolio of consumer brands from Cheez-Its to Pop-Tarts.
Kellanova was created when the Kellogg Co., which was formed in 1906, split into three companies. Kellanova, based in Chicago, houses many brands, including Pringles, Town House, MorningStar Farms and Rice Krispies Treats. It had net sales of more than $13 billion last year and has approximately 23,000 employees.
Mars Inc. said Wednesday that it will pay $83.50 per share in cash. The company put the total value of the transaction at $35.9 billion.
The deal is expected to close in the first half of next year. Once it is complete, Kellanova will become part of Mars Snacking. It will remain based in Chicago.
“The Kellanova brands significantly expand our snacking platform, allowing us to even more effectively meet consumer needs and drive profitable business growth,” Andrew Clarke, global president of Mars Snacking, said in a statement.
Shares of Kellanova rose more than 8% before the opening bell Wednesday.
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