Mars to Buy Pringles Maker Kellanova for Nearly $30 Billion
Mars Inc., the family-owned candy giant known for brands like M&M's and Snickers, is poised to acquire Kellanova, the maker of snacks such as Pringles and Cheez-It, for nearly $30 billion. The deal, expected to be announced on Wednesday, will involve Mars paying $83.50 per share in an all-cash transaction, representing a 33% premium over Kellanova's stock price prior to the acquisition discussions. This acquisition would surpass Mars' previous largest deal, the $23 billion takeover of Wrigley in 2008.
The acquisition is set to bolster Mars' diversification strategy by expanding its portfolio beyond confectionery to include a wider array of snack foods. Kellanova, which was spun off from Kellogg last year, brings a strong market presence with products like Pop-Tarts, Rice Krispies Treats, and Eggo frozen waffles. Analysts suggest that the merger is unlikely to face significant antitrust concerns due to the limited overlap between the two companies' product lines. This move comes as the packaged food industry grapples with challenges such as price inflation, shifting consumer preferences, and the impact of weight-loss drugs on demand.
