2024-08-14 14:10:07
When M&M’s chewed Pringles, the food world went haywire. In fact, the American family giant Mars officially acquired its fellow snack group Kellanova, known for its Pringles, Rice Krispies, NutriGrain, Pop-Tarts and Kellogg’s brands, on Wednesday, August 14. Pringles and Kellogg’s breakfast cereals are known as billionaire brands due to the turnover they each generate worldwide.
To win this option, Mars invested nearly $36 billion (more precisely $35.9 billion) in cash, or 35.2 billion euros. In fact, the buyer will pay $83.5 per share to Kellanova security holders. This price represents a 33% premium to the closing price on Friday, August 2, when the discussions between the two groups were disclosed.
Headquartered in Chicago, Kellanova has 23,000 employees worldwide and 2023 revenue of $13 billion.
Skyrocketing cocoa prices rock the chocolate world
With this acquisition, the largest in the food industry this year, Mars, which also ventures into pet nutrition and care, is strengthening its snacks business. The division is built around strong brands such as M&M’s, Snickers or Twix, but it is very dependent on the chocolate world, which is being shaken by explosive cocoa prices. With Kellanova, Mars is diversifying its snacks offering.
Back in 2008, the Virginia-based group, owned by the Mars family, spent $23 billion to acquire Wrigley and expand its brand portfolio. It was a costly move, as the chewing gum market was in sharp decline. But the group, with revenues set to exceed $50 billion in 2023, proves that it has lost none of its appetite.
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