Mars Foods acquires Kilanova for USD35.9B, expands snack portfolio

(MENAFN) Mars Foods Inc. announced on Wednesday its plan to acquire Kellanova, the maker of Kellogg's breakfast cereals and Pringles potato chips, for USD35.9 billion. This acquisition, which values Kellanova at USD83.50 per share, represents a significant move for Mars, known for brands such as M&M's and Snickers. According to Mars Group CEO Paul Weyrauch, this acquisition will bolster Mars's ambitions to develop a sustainable and future-fit snacking business, aligning with global consumer demand trends.

The acquisition will not only expand Mars’s snack portfolio by adding popular brands like Pringles and Cheez-It but will also support its goal of doubling Mars Snacks over the next decade. Kellanova, which reported net sales exceeding USD13 billion in 2023 and operates in 180 markets with a workforce of around 23,000 employees, is recognized for its strong performance among Generation Z and millennial consumers. Mars anticipates that this strategic acquisition will enhance its ability to cater to growing demand in emerging markets such as Africa and Latin America.

Mars highlighted that the deal would significantly strengthen its position in the robust and evolving snack sector, which continues to grow in importance among consumers. The integration of Kellanova’s brands into Mars’s portfolio is expected to address increasing global snack demands and capture a larger share of the market, reflecting a strategic alignment with shifting consumer preferences and market opportunities. 

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