Mars, the global giant known for its candy and gum brands, has agreed to purchase snack manufacturer Kellanova for $35.9 billion. This acquisition marks the largest deal in the food and beverage sector since the $45 billion Kraft Heinz merger in 2015.
Kellanova, the company behind popular brands like Cheez-It, Pringles, Pop-Tarts, and Eggo, will become part of Mars Snacking. The expanded portfolio will include brands such as M&M’s, Kind bars, and Extra gum. The transaction is expected to close in the first half of 2025, with Mars Snacking’s global president, Andrew Clarke, leading the combined operations from its headquarters in Chicago.
This acquisition comes less than a year after Kellanova was established as a standalone company following its separation from Kellogg’s North American cereal unit. The deal represents a significant move for Mars, which, while best known for its confectionery, has a diverse presence in packaged foods and pet care, including brands like Ben’s Original and Pedigree.
Industry experts see the acquisition as a strategic move for Mars to deepen its presence in the savoury snacks category, where it currently lacks a strong foothold. Neil Saunders, managing director of GlobalData, highlighted the potential for Mars to capitalize on the growing savoury snack market, though he cautioned that the high price tag could challenge profitability.
Kellanova CEO Steve Cahillane expressed confidence in Mars’ ability to foster innovation and growth within Kellanova’s brand portfolio, emphasizing the potential for expansion in the better-for-you snacks category.
In a statement, Cahillane said, “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.”
Despite some concerns about the scale of the acquisition, Kellanova and Mars do not anticipate any antitrust issues, with minimal overlap between the two companies’ product lines.
This landmark deal underscores Mars’ ongoing efforts to diversify its business and solidify its position in the rapidly evolving food and beverage industry.