In a landmark move within the food industry, Mars has announced its acquisition of Kellanova for approximately $36 billion, including the company’s debt. This deal merges two significant players in the food sector, making it one of the largest transactions of the year.
Mars will offer $83.50 per share in cash for Kellanova, the producer behind popular snacks like Pringles and Eggo waffles. This bid represents nearly a 33% premium over Kellanova’s closing share price on August 2, the last trading day before news of the negotiations surfaced.
The food industry has been grappling with declining sales volumes, slowed growth, and diminished consumer demand. As companies seek innovative solutions and new markets to drive sales, there is an increasing resistance from buyers to rising prices — a trend likely to spur further industry consolidation.
Following the spin-off of its cereal business into WK Kellogg at the end of last year, Kellanova has shown stronger performance relative to its competitors, making it a compelling acquisition target for Mars.