Mars, the family-owned candy giant known for M&M’s and Snickers, announced on Wednesday that it will acquire Kellanova, the maker of Cheez-It and Pringles, in a nearly $36 billion all-cash deal.
Mars will pay $83.50 per share, a 33% premium over Kellanova’s closing price on August 2. Kellanova’s shares rose 8% to $80.45 before trading.
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This acquisition, Mars’ largest to date, surpasses its $23 billion purchase of Wrigley in 2008. It will combine Mars’ confectionery brands, including Twix and Milky Way, with Kellanova’s snacks such as Pop-Tarts and Eggo waffles. Despite slowing sales growth in the U.S. packaged food sector, the deal is not expected to face significant antitrust issues due to minimal overlap between the companies’ products.
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Kellanova, which split from WK Kellogg last October, will join Mars Snacking under Global President Andrew Clarke in Chicago after the deal closes in early 2025. Kellanova reported over $13 billion in net sales for 2023.
