Mars, the family-owned candy giant known for M&M’s and Snickers, announced a monumental $36 billion acquisition of Kellanova, the maker of Cheez-It and Pringles.
In an all-cash deal, Mars will pay $83.50 per share for Kellanova, marking a 33% premium over the company’s recent stock price. The acquisition, set to be the largest in the packaged food industry, will expand Mars’ portfolio to include Kellanova’s popular brands like Pop-Tarts, Rice Krispies Treats, and Eggo waffles.
This deal comes amid a challenging environment for U.S. packaged food companies, as inflation and competition from private-label brands strain sales. Despite the scale of the transaction, legal experts anticipate minimal antitrust hurdles due to the limited overlap between the companies’ product lines. The acquisition follows Kellanova’s recent split from WK Kellogg Co., where it retained its global snacks business.
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