In a move that shakes up the global snacking landscape, Mars has announced its intention to acquire Kellanova for a staggering £28 billion. This cash deal will see the M&M's owner merge with the Kellogg spin-off, creating a snacking behemoth boasting brands like Pringles, Cheez-Its, and more.
The £83.50 per share offer marks a significant acquisition for Mars, adding Kellanova's roster of popular brands to its already substantial snacking portfolio. Kellanova, which separated from Kellogg last year, comprises a collection of snacking and plant-based brands, generating over £10 billion in net sales in 2023.
âKellanova has been on a journey to become the worldâs best snacking company,â stated Steve Cahillane, chairman, president and CEO of Kellanova. âJoining Mars will accelerate the realisation of our full potential and vision.â
This acquisition comes at a time when consumers are increasingly feeling the pinch of inflation and seeking value for their money. Grocery retailers have seen a rise in demand for private label options, reflecting the trend towards cost-consciousness.
However, Mars is betting on the enduring appeal of its iconic brands to navigate this economic landscape. Andrew Clarke, global president of Mars Snacking, believes the deal will create a "broader, global snacking business" capable of meeting evolving consumer needs and driving profitability.
The acquisition will bolster Mars's existing healthy snacking offerings, with the addition of brands like RXBAR and Nutri-Grain complementing its existing portfolio, which includes KIND and other popular snacks.
The transaction is anticipated to complete in the first half of 2025, marking a significant milestone in the snacking industry. The merger of these two giants will undoubtedly shape the future of the market, leaving a lasting impact on both consumers and competitors.