Mars Acquiring Kellanova
According to the companies, the deal advances a strategic vision for the future of snacking in the following ways:
Furthers ambition to double Mars Snacking in the next decade, in alignment with global consumer demand trends. Kellanova provides Mars Snacking with entry into new attractive snacking categories, adding two new billion-dollar brands – Pringles and Cheez-It – to the Mars business, which today features 15 billion-dollar brands. It will also expand the Mars health-and-wellness snacking portfolio with complementary products like RXBar and NutriGrain.
Enhances portfolio with addition of category-leading and growing brands. Kellanova’s differentiated brand portfolio delivers category leadership and platforms poised for future growth. Most of its snacking brands outperform category competitors, particularly among Gen Z and Millennial consumers.
Delivers stronger, differentiated portfolio and distribution platform for priority international markets. Kellanova’s globally recognized portfolio contains beloved and growing brands with untapped potential, especially in such fast-growing geographies as Africa and Latin America.
Unites world-class talent with solid brand-building experience. Both companies have portfolios of some of the world’s most iconic brands, all of which have been nurtured and grown by world-class talent with deep expertise. The acquisition will enable each company’s talent base to take advantage of greater combined resources and professional development opportunities.
Combines complementary capabilities to spur growth and consumer-centric innovation. The addition of Kellanova’s R&D capabilities will permit the combined business to share best practices in brand building, deliver improved digital capabilities, develop complementary channel strengths, and further brand ecosystems and immersions.
Increases positive societal impact of strong sustainability efforts. Kellanova’s long history of social and environmental leadership includes its Better Days Promise initiative, complementing Mars’ Sustainable in a Generation Plan, which has made tangible progress, including the strong decoupling of business growth from greenhouse-gas emissions. Kellanova will also become part of the Mars Net Zero commitment and align with the Mars Responsible Marketing code.
Under the terms of the deal, Mars will acquire all outstanding equity of Kellanova for $83.50 per share in cash, for a total enterprise value of $35.9 billion. All of Kellanova’s brands, assets and operations are included in the transaction. Mars plans to fully finance the acquisition through a combination of cash on hand and new debt, for which commitments have been secured.
The agreement has been unanimously approved by Kellanova’s board of directors, although subject to Kellanova shareholder approval and other customary closing conditions, including regulatory approvals, and is expected to close during the first half of 2025. The W.K. Kellogg Foundation Trust and the Gund family have entered into agreements under which they’ve committed to vote shares representing 20.7% of Kellanova’s common stock, as of Aug. 9, 2024, in favor of the transaction.
After the deal closes, Battle Creek, Mich. – the historic hometown of Kellogg’s brands – will remain a core location for the combined organization.
A dedicated website has launched to provide ongoing information on the transaction.
Last year, Kellanova, which was formerly known as Kellogg Co., completed the previously reported separation of its North American cereal business, WK Kellogg Co, resulting in two independent public companies.