Mars to acquire Kellanova in $36b deal

Mars is buying out fellow snack firm Kellanova (formerly a division of Kellogg’s) in a deal worth $35.9b (£27.9b).

Kellanova is home to brands including Pringles, Cheez-It (which has just launched into UK foodservice), Pop-Tarts, Rice Krispies Treats, NutriGrain and RXBAR, as well as food brands including Kellogg’s, Eggo and MorningStar Farms.

In 2023 the company generated net sales of more than $13b (£10b), with a presence in 180 markets and approximately 23,000 employees.

The groups believe their portfolios are complementary, with Mars brands including Snickers, M&M’s, Twix, Dove and Extra, as well as Kind and Nature’s Bakery. With more than 150,000 associates across its pet care, snacking and food businesses, Mars had 2023 net sales of more than $50b (£39b).

Upon completion of the transaction, Kellanova will become part of Mars Snacking, headquartered in Chicago, allowing Mars to bring more brands to more consumers globally. Mars intends to further nurture and 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” to meet evolving consumer needs.

All of Kellanova’s brands, assets and operations, including its snacking brands, portfolio of international cereal and noodles, North American plant-based foods and frozen breakfast are included in the deal.

Poul Weihrauch, chief executive and office of the president of Mars, said: “In welcoming Kellanova’s portfolio of growing global brands, we 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.”

Steve Cahillane, chairman, president and chief executive of Kellanova, said: “This is a truly historic combination with a compelling cultural and strategic fit. Kellanova has been on a transformation journey to become the world’s best snacking company, and this opportunity to join Mars enables us to accelerate the realisation of our full potential and our vision.”

Andrew Clarke, global president of Mars Snacking, said: “This is an exciting opportunity to create a broader, global snacking business, allowing Kellanova and Mars Snacking to both achieve their full potential.”

The agreement has been unanimously approved by Kellanova’s board and, subject to shareholder and regulatory approval, is expected to close within the first half of 2025.