• Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock
Investing

Mars acquires Kellanova for $36 billion, adds Pringles and Cheez-It to its portfolio

by August 14, 2024
written by August 14, 2024

Mars, the global family-owned confectionery giant known for brands such as M&M’s and Snickers, has announced its acquisition of Kellanova, the maker of Cheez-It and Pringles.

The deal, valued at approximately $36 billion, is set to become the largest transaction in the packaged food industry.

Mars pays 33% premium for Kellanova

Mars will pay $83.50 per share in an all-cash transaction, representing a 33% premium over Kellanova’s closing price on August 2.

This acquisition marks a significant expansion of Mars’ portfolio, bringing together a diverse range of consumer brands under one roof.

Kellanova, which separated from WK Kellogg in October 2023, has established itself in the salty snacks business and is a significant player in the cereal market outside North America.

The company reported net sales exceeding $13 billion in 2023, making it a valuable addition to Mars’ existing product offerings.

The deal follows Mars’ $23 billion takeover of Wrigley in 2008, which now appears modest by comparison.

Acquisition impacts: Kellanova joins Mars Snacking

Upon completion of the acquisition, expected in the first half of 2025, Kellanova will become part of Mars Snacking, a division led by Global President Andrew Clarke and based in Chicago.

The acquisition is anticipated to strengthen Mars’ presence in the snacking sector, complementing its existing brands such as Twix, Bounty, and Milky Way with Kellanova’s snack portfolio, which includes popular products like Pop-Tarts, Rice Krispies Treats, and Eggo frozen waffles.

Legal experts have suggested that the deal is unlikely to encounter significant antitrust hurdles, given the limited overlap between Mars’ and Kellanova’s product offerings.

This assessment is crucial for the smooth progression of the transaction, ensuring that Mars can swiftly integrate Kellanova’s brands into its operations.

Navigating a challenging market

The acquisition comes at a time when US packaged food companies are facing slower sales growth.

Companies like Kraft Heinz, Mondelez, and Hershey have observed budget-conscious consumers increasingly turning to cheaper private labels instead of premium branded items.

This trend has prompted major players in the industry to reassess their strategies, with mergers and acquisitions becoming a viable pathway for growth and market expansion.

Mars’ decision to acquire Kellanova highlights the company’s strategic focus on diversifying its portfolio and expanding its market share in the highly competitive snacking industry.

By bringing together Mars’ stronghold in confectionery and Kellanova’s dominance in snacks, the combined entity is well-positioned to navigate the evolving consumer landscape and meet the changing preferences of consumers.

Mars and Kellanova’s combined potential

The successful integration of Kellanova into Mars Snacking will be pivotal in determining the long-term success of this acquisition.

With Kellanova’s strong brand presence and Mars’ extensive distribution network, the combined entity is expected to drive significant growth in the coming years.

This strategic move also signals Mars’ commitment to expanding its footprint in the snacking sector, capitalising on the growing demand for convenient and indulgent snack options.

As the deal progresses, industry observers will be watching closely to see how Mars leverages Kellanova’s assets to enhance its product offerings and strengthen its competitive position in the market.

The acquisition not only reshapes the landscape of the packaged food industry but also sets the stage for future mergers and acquisitions as companies seek to adapt to changing market dynamics.

The post Mars acquires Kellanova for $36 billion, adds Pringles and Cheez-It to its portfolio appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Goldman Sachs upgrades nCino to Buy with $42 price target: Should you invest?
next post
Texas sues GM for allegedly selling drivers’ data without consent

related articles

Asian markets open: Nikkei, Hang Seng fall on...

June 12, 2025

Aluminum and steel tariffs spark rise in secondary...

June 12, 2025

Airbus sees aviation boom ahead, global fleet to...

June 12, 2025

US-China trade talks and Washington’s decade-long effort to...

June 12, 2025

Europe markets open: Stoxx 600 dips as UK...

June 12, 2025

UK GDP falls by 0.3% in April as...

June 12, 2025

Gordon Brothers buys Poundland; pledges £80 mn for...

June 12, 2025

Air India plane crash: London-bound flight with 242...

June 12, 2025

Air India plane crash live update: Indian President...

June 12, 2025

Copper remains supported for now even as China...

June 12, 2025
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest News

  • Buffett denies rumors after Trump shares wild claim that investor backs president crashing market

    April 5, 2025
  • Elon Musk sports black eye at farewell presser in Oval Office: ‘Horsing around with little X’

    May 30, 2025
  • Hegseth orders ‘historic’ reduction of general officers in the military

    May 6, 2025
  • Expert warns UN’s role in AI regulation could lead to safety overreach

    October 5, 2024
  • Nvidia says it is not sending GPU designs to China after reports of new Shanghai operation

    May 16, 2025

Popular Posts

  • 1

    Secret Service admits leaning on ‘state and local partners’ after claim it ignored Trump team’s past requests

    July 21, 2024
  • 2

    Elon and Vivek should tackle US funding for this boondoogle organization and score a multimillion dollar win

    December 4, 2024
  • 3

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 4

    Five more House Democrats call on Biden to drop out, third US senator

    July 19, 2024
  • 5

    Biden calls to ‘lower the temperature’ then bashes Trump in NAACP speech

    July 17, 2024

Categories

  • Economy (829)
  • Editor's Pick (5,005)
  • Investing (634)
  • Stock (809)

Latest Posts

  • Warner Bros. Discovery sues NBA to secure media rights awarded to Amazon

    July 29, 2024
  • Dem voters at Milwaukee rally say they’re fired up for Harris: ‘United and energized’

    July 24, 2024
  • Harris campaign announces concert series with Bruce Springsteen to mobilize voters ahead of Election Day

    October 22, 2024

Recent Posts

  • Chipotle has been on a hot streak with customers

    July 25, 2024
  • Asian markets mixed on Friday: Hang Seng outperforms with over 2% surge

    February 14, 2025
  • The price of Ethereum is losing momentum at the $3200 level

    July 12, 2024

Editor’s Pick

  • GOP rep who hasn’t voted in months living in retirement facility: source

    December 22, 2024
  • 10 Dems vote with GOP to rebuke Biden officials over chaotic Afghanistan withdrawal

    September 25, 2024
  • What recession? Walmart says consumers are still spending

    August 15, 2024
  • About us
  • Contacts
  • Privacy Policy
  • Terms & Conditions

Disclaimer: moneyrisetoday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2025 moneyrisetoday.com | All Rights Reserved

Money Rise Today – Investing and Stock News
  • Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock