Mars has entered into an agreement to acquire Kellanova for USD $83.50 per share in cash, totalling USD $35.9 billion (NZ$59.9 billion).
The price of USD $83.50 represents about a 33 percent premium to Kellanova’s unaffected 52-week high as of August 2, 2024. The deal will bring together some of the world’s largest confectionery and snack brands, with Kellanova owning brands such as Pringles and Nutri-Grain.
Since splitting from WK Kellogg last October to focus on snacks and other foods, Kellanova shares have risen but were still trading at less than some of its peers such as Mondelēz International and Hershey, which made it an attractive acquisition target.
Poul Weihrauch, CEO and Office of the President of Mars Inc, said they have a substantial opportunity for Mars to further develop a sustainable snacking business that is fit for the future.
“We will honour 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.”
Upon completion of the transaction, Kellanova will become part of Mars Snacking, led by Global President Andrew Clarke and headquartered in Chicago. Mars intends to apply its brand-building approach to further grow Kellanova’s brands, including accelerating innovation to meet evolving consumer tastes and preferences, investing locally to expand reach and introducing more better-for-you nutrition options.
Steve Cahillane, Chairman, President and CEO of Kellanova, called it a truly historic combination with a compelling cultural and strategic fit.
“The transaction maximises shareholder value through an all-cash transaction at an attractive purchase price and creates new and exciting opportunities for our employees, customers, and suppliers.
“We are excited for Kellanova’s next chapter as part of Mars, which will bring together both companies’ world-class talent and capabilities and our shared commitment to helping our communities thrive. With a proven track record of successfully and sustainably nurturing and growing acquired businesses, we are confident Mars is a natural home for the Kellanova brands and employees.”
Kellanova currently makes its products in 21 countries and markets them in over 180 countries, with brands such as Pringles, Nutri-Grain, Pop-Tarts, and LCMs. Mars has a number of brands in Australia and New Zealand, spanning the confectionery, food, and pet care categories.
