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Mars to acquire Kellanova for a total of $35.9 billion
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Wednesday, 21 August, 2024, 15 : 00 PM [IST]
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McLean, Virginia & Chicago, Illinois, USA
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Mars, Incorporated, a family-owned, global leader in pet care, snacking and food, and Kellanova, a leading company in global snacking, international cereal and noodles, North American plant-based foods and frozen breakfast foods, announced that they have entered into a definitive agreement under which the company has agreed to acquire it for $83.50 per share in cash, for a total consideration of $35.9 billion, including assumed net leverage. The transaction price represents a premium of approximately 44% to its unaffected 30-trading day volume weighted average price and a premium of approximately 33% to its unaffected 52-week high as of August 2, 2024. The total consideration represents an acquisition multiple of 16.4x LTM adjusted EBITDA as of June 29, 2024.
It is home to iconic snacking brands including Pringles, Cheez-It, Pop-Tarts, Rice Krispies Treats, NutriGrain and RXBAR, as well as cherished food brands including Kellogg’s (international), Eggo and MorningStar Farms. With roots dating back more than 100 years, it has a rich legacy of quality and innovation. It had 2023 Net Sales of more than $13 billion, with a presence in 180 markets and approximately 23,000 employees.
The portfolio complements the 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. The company also has 10 pet care brands with over $1 billion in sales, including Royal Canin, VCA, Pedigree, Banfield, Whiskas, Bluepearl, Cesar, Sheba, Anicura and IAMS. With more than 150,000 associates across its Petcare, Snacking and Food businesses, the company had 2023 Net Sales of more than $50 billion.
Poul Weihrauch, CEO and office of the president of Mars Incorporated, said, “In welcoming Kellanova’s portfolio of growing global brands, we have a substantial opportunity for Mars to further develop a sustainable snacking business that is fit for the future. We will honour the heritage and innovation behind Kellanova’s incredible snacking and food brands while combining our respective strengths to deliver more choice and innovation to consumers and customers. We have tremendous respect for the storied legacy that Kellanova has built and look forward to welcoming the Kellanova team.”
Steve Cahillane, chairman, president and CEO of Kellanova, said, “This is a truly historic combination with a compelling cultural and strategic fit. Kellanova has been on a transformation journey to become the world’s best snacking company, and this opportunity to join Mars enables us to accelerate the realization of our full potential and our vision. The transaction maximizes shareholder value through an all-cash transaction at an attractive purchase price and creates new and exciting opportunities for our employees, customers, and suppliers. We are excited for Kellanova’s next chapter as part of Mars, which will bring together both companies’ world-class talent and capabilities and our shared commitment to helping our communities thrive. With a proven track record of successfully and sustainably nurturing and growing acquired businesses, we are confident Mars is a natural home for the Kellanova brands and employees.”
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