Sweet and salty snacks mega-deal brings M&M’s and Cheez-Its together
By Hanna Ziady, CNN
London (CNN) — Mars has agreed to buy Kellanova in a deal that values the maker of Cheez-Its and Pringles at almost $29 billion.
Kellanova said in a regulatory filing that its shareholders would receive $83.50 per share in cash from Mars, which makes Snickers, M&M’s, and the Mars bar.
Shares in Kellanova (K) — created when Kellogg Company separated its snacks and cereal businesses last year — jumped more than 8% in pre-market trading. The stock has surged some 28% so far this month, on better-than-expected earnings and after news of deal talks surfaced in early August.
Kellanova, which also makes Pop-Tarts, Eggo, and MorningStar Farms vegan and vegetarian food, earlier this month raised its sales forecast after reporting strong first-half results.
The deal unveiled Wednesday, one of the biggest takeovers of the year, comes as consumers turn increasingly health-conscious, prompting food groups such as Nestle to develop products aimed at helping people manage their weight.
Consumers are also cutting back on non-essential spending — as inflation and high interest rates take a bite out of their budgets — hurting sales at companies including McDonald’s (MCD), Burger King, and Starbucks (SBUX).
The Kellanova acquisition ranks in the top 10 global food and beverage mergers and acquisitions since 1995, according to Dealogic. It is the fourth-largest M&A deal so far this year.
Family-owned Mars, which boasts annual sales in excess of $50 billion and a global workforce of 150,000, has been on a buying spree in recent years. In 2020, it snapped up the company behind Kind bars and later Nature’s Bakery. Two years later, it bought Trü Frü, which makes chocolate-covered fruit snacks. And last year, it spent more than half a billion dollars on boutique British chocolate maker Hotel Chocolat.
This is a developing story and will be updated.
Anna Cooban contributed reporting.
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