Mars Near $30 Billion Deal for Cheez-It and Eggo Maker Kellanova
Acquisition would push Mars, known for M&M’s and Skittles, into supermarkets’ chips and cracker aisles
Mars is expected to unveil a nearly $30 billion deal for foodmaker Kellanova K 0.69%increase; green up pointing triangle on Wednesday, according to people familiar with the matter, assuming talks don’t hit a last-minute snag.
The privately held Mars is expected to pay $83.50 a share for Kellanova in the all-cash deal, some of the people said.
Kellanova shares closed Tuesday at $74.50 and had been trading in the high $50s before the company reported better-than-expected earnings and news of the deal talks surfaced earlier this month.
The Wall Street Journal reported Aug. 4 that the two were in advanced talks and could reach a deal imminently.
Kellanova was spun off from Kellogg last year and sells brands including Pringles, Cheez-It, Pop-Tarts, Eggo and MorningStar Farms, as well as some cereals and noodles. Its snacks-heavy business was split from Kellogg’s slower-growing North American cereal business, which sells brands such as Frosted Flakes and Froot Loops, and was renamed WK Kellogg.
Acquiring Kellanova would push Mars, known for M&M’s and Skittles, into supermarkets’ chips and cracker aisles, giving it a bigger share of the snacking pie when consumers are eating fewer sit-down meals and more snacks throughout the day.
Since 2020, privately held Mars has scooped up snack-bar maker Kind’s North America business, Nature’s Bakery and Trü Frü, which makes chocolate-coated fruit snacks, part of an effort to expand in snacks.
The McLean, Va.-based company is family-owned. Beyond candy and snacks, Mars also sells food products like Ben’s Original rice and runs a substantial pet-food business. In 2017, it paid $7.7 billion for veterinary and dog-daycare company VCA.