Mars, Incorporated has announced a definitive agreement to acquire Kellanova (NYSE: K) for $83.50 per share in cash, totalling $35.9 billion, including assumed net leverage. This acquisition price represents a significant premium, approximately 44% above Kellanova’s 30-day volume-weighted average price and about 33% above its 52-week high as of August 2, 2024. The deal values Kellanova at a multiple of 16.4 times its last twelve months adjusted EBITDA as of June 29, 2024.
Kellanova, renowned for its iconic snacking brands such as Pringles®, Cheez-It®, Pop-Tarts®, Rice Krispies Treats®, NutriGrain®, and RXBAR®, also boasts well-known food brands including Kellogg’s® (international), Eggo®, and MorningStar Farms®. With over a century of heritage, Kellanova reported net sales exceeding $13 billion in 2023 and operates in 180 markets with around 23,000 employees.
Mars’ acquisition of Kellanova will bolster its existing portfolio, which includes billion-dollar snacking and confectionery brands like SNICKERS®, M&M’S®, TWIX®, DOVE®, and EXTRA®, as well as KIND® and Nature’s Bakery®. Mars also manages a robust pet care segment with brands such as ROYAL CANIN®, PEDIGREE®, and WHISKAS®. In 2023, Mars achieved net sales of over $50 billion and employs more than 150,000 people globally.
Poul Weihrauch, CEO of Mars, Incorporated, expressed enthusiasm for the acquisition, stating, “Integrating Kellanova’s esteemed global brands presents a significant opportunity for Mars to advance our sustainable snacking business. We are committed to honoring Kellanova’s legacy while combining our strengths to enhance consumer choice and innovation.”
Steve Cahillane, Chairman, President, and CEO of Kellanova, described the merger as a historic and strategic move. “This combination represents a tremendous cultural and strategic alignment,” Cahillane said. “Joining Mars accelerates our vision and maximizes shareholder value through this all-cash transaction. We are excited about the new opportunities this merger creates for our employees, customers, and suppliers.”
Once the transaction is completed, Kellanova will be integrated into Mars’ Snacking division, led by Global President Andrew Clarke and based in Chicago. Clarke emphasized the strategic value of the deal, noting, “This acquisition allows us to build a larger, more global snacking business and enhances our ability to meet consumer needs and drive growth through our expanded portfolio.”
