In a landmark move, Mars Inc., a family-owned giant in pet care and confectionery, has officially struck a deal to acquire Kellanova for an estimated $35.9 billion. This all-cash offer, priced at $83.50 per share, marks not only the largest acquisition of 2024 but also the most significant consumer packaged goods (CPG) transaction since Kraft merged with H.J. Heinz in 2015.
Kellanova, with its impressive portfolio housing popular brands like Pringles, Cheez-It, and NutriGrain, reported over $13 billion in net sales last year. The deal positions Mars to leverage Kellanova’s market presence in 180 countries and a workforce of approximately 23,000 employees. Mars’ existing $50 billion revenue stream, driven by brands such as Snickers and M&M’s, stands to gain significantly from this agreement.
The merger aligns with strategic goals set by both companies. Mars CEO, Poul Weihrauch, highlighted the potential for growth in sustainable snacking, while Kellanova’s CEO, Steve Cahillane, emphasized that joining forces would facilitate the realization of enhanced shareholder value and open new avenues for innovation.
Mars plans to structure Kellanova as a division under its snacking portfolio, led by Global President Andrew Clarke. This integration is expected to enhance innovation, improve market reach, and cater to shifting consumer preferences toward healthier snacks. Additionally, both firms aim to double Mars Snacking’s growth in the next decade, tapping into emerging markets primarily in Africa and Latin America.
The agreement has received unanimous approval from Kellanova’s board and is projected to finalize in early 2025, contingent on shareholder and regulatory approvals. The transaction embodies a strategic alignment that promises to reshape the snacking landscape, benefiting both companies and their stakeholders.
