Mars, Incorporated is set to expand its global snack industry footprint with a $35.9 billion acquisition of Kellanova. The two companies have entered into a definitive agreement, marking a significant move in the sector as Mars continues strengthening its position as a powerhouse in the global market.
Kellanova 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, Kellanova has a rich legacy of quality and innovation. The company had 2023 Net Sales of more than $13 billion, with a presence in 180 markets and approximately 23,000 employees.
Poul Weihrauch, CEO and President of Mars, Incorporated, expressed enthusiasm about the acquisition, stating, “By welcoming Kellanova’s portfolio of growing global brands, Mars is poised to significantly advance our sustainable snacking business, shaping it for the future. We will honor the rich heritage and innovation that define Kellanova’s remarkable brands while leveraging our combined strengths to offer consumers and customers even more choice and innovation. We deeply respect the legacy Kellanova has built and eagerly anticipate integrating their talented team into the Mars family.”
Mars said that Kellanova’s portfolio complements their 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 has 10 pet care brands with over $1 billion in sales, including ROYAL CANIN®, VCA®, PEDIGREE®, BANFIELD®, WHISKAS®, BLUEPEARL®, CESAR®, SHEBA®, ANICURA® and IAMS®.
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With more than 150,000 associates across its pet care, snack, and food businesses, Mars had 2023 net sales of more than $50 billion.
Upon completing the transaction, Kellanova will become part of Mars Snacking, led by Global President Andrew Clarke and headquartered in Chicago. This will allow Mars to bring even more beloved brands to more consumers globally.
Steve Cahillane, Chairman, President and CEO of Kellanova, added: “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,” Cahillane noted.
Mars intends to apply its proven brand-building approach to further nurture and grow Kellanova’s brands. This includes accelerating innovation to meet evolving consumer tastes and preferences, investing locally to expand reach, and introducing more better-for-you nutrition options to meet evolving consumer needs.
“This is an exciting opportunity to create a broader, global snacking business, allowing Kellanova and Mars Snacking to both achieve their full potential. The Kellanova brands significantly expand our Snacking platform, allowing us to meet consumer needs even more effectively and drive profitable business growth,” said Clarke.
Transaction Advances Strategic Vision for the Future of Snacking
- Accelerates ambition to double Mars Snacking in the next decade, in alignment with global consumer demand trends. The addition of Kellanova allows Mars Snacking to enter new attractive snacking categories.
- It will add two new billion-dollar brands—Pringles® and Cheez-It® —to the Mars business, which today includes 15 billion-dollar brands. It will also expand the Mars health and wellness Snacking portfolio by adding new complementary products like RXBAR® and NutriGrain® to reflect global trends and preferences.
- Enhances portfolio with the addition of unique, category-leading, and growing brands. Kellanova’s differentiated brand portfolio is defined by uniqueness, delivering category leadership and spring-loaded platforms for future growth.
- Delivers stronger, differentiated portfolio and distribution platform for priority international markets. The combined portfolio will be well-suited to meet consumer demands for various tastes and price points in fast-growing geographies, including Africa and Latin America, through complementary routes-to-market, supply chains, and local operations.
- Bring together world-class talent with leading brand-building experience. Mars and Kellanova have portfolios of some of the world’s most iconic brands, all of which have been nurtured and grown by world-class talent with deep expertise.
- Combines complementary capabilities to unlock growth and consumer-centric innovation. The addition of Kellanova’s R&D capabilities will enable the combined business to share best practices in brand building, deliver enhanced digital capabilities, unlock complementary channel strengths, and advance brand ecosystems and immersions.
- Enhances the positive societal impact of strong sustainability efforts. Kellanova has a long history of social and environmental leadership, including its Better Days Promise initiative, which complements the Mars Sustainable in a Generation Plan.