Mars Set to Acquire Kellanova in a Historic $36 Billion Deal

One of the most notable events in the packaged food business is connected to Mars, the family-owned corporation producing a wide array of well-known snacks like M&M’s or Snickers. The company is going to acquire Kellanova, a leading producer of Cheez-It or Pringles, in a nearly $36 billion deal that is going to be one of the largest in the history of the sector. Mars offered $83.50 per share to Kellanova, which amounts to a premium of almost 33% above the closing price of the target’s stocks shortly before the announcement of the deal.

In order to stay competitive in the food business, Mars must strive for diversification and a strengthening of its portfolio. This deal is especially important for Mars since the U.S. food producers are moving through a slow-growth period of their development which affects the entire sector. Many companies struggle to compete with the growing popularity of budget and private-label products. The price paid for the acquisition is higher than the deal with Wrigley Mars made in 2008, which amounted to $23 billion. Kellanova was spun off WK Kellogg Co last year and its most popular brands are Cheez-It and Pringles, the leading producers of salted snacks. The two corporations produce different products, which is why the merger is expected to have no antitrust ramifications.