Official: Mars to Acquire Kellanova for $35.9B

Mars has agreed to acquire Kellanova for $83.50 per share in cash, for a total consideration of $35.9 billion, including assumed net leverage.

This will allow Mars to create a broader, global snacking business; the company expects to double Mars Snacking in the next decade.

The first rumors of the Mars/Kellanova transaction appeared on Aug. 6.

Kellanova is home to iconic snacking brands including Pringles, Cheez-It, Pop-Tarts, Rice Krispies Treats, NutriGrain Kellogg’s (international), Eggo, MorningStar Farms, and other popular brands.

Kellanova has been around for more than 100 years, with presence in 180 markets and approximately 23,000 employees. Its portfolio complements the Mars brands, which include SNICKERS, M&M’S, TWIX, DOVE, KIND, and more. Mars also has 10 pet care brands, including ROYAL CANIN, VCA, PEDIGREE, WHISKAS, CESAR, SHEBA, and others.

In February, Kellanova announced two probably plant closures.

“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 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," said Poul Weihrauch, CEO and Office of the president of Mars.

Steve Cahillane, chairman, president and CEO of Kellanova, said the acquisition is an historic combination with a compelling cultural and strategic fit. "Kellanova has been on a transformation journey to become the world’s best snacking company, and this opportunity to join Mars enables us to accelerate the realization of our full potential and our vision."

Kellanova will become part of Mars Snacking, led by Global President Andrew Clarke and headquartered in Chicago, IL.

With the acquisition, Mars intends to accelerate innovation to meet evolving consumer tastes and preferences, invest locally, and introducemore better-for-you options.