By Gary Symons
TLL Editor in Chief
Mars, Incorporated has completed its acquisition of Kellanova in a marriage of two food and beverage giants.
The completion of the deal, first announced in August, follows completion of required regulatory and shareholder approvals.
Mars, a family-owned leader in snacking, food and pet care, agreed to acquire Kellanova for $83.50 per share, for a total consideration of $35.9 billion.
Mars is a family-owned global company operating in pet care, snacking, and food, while Kellanova’s snack and cereal-focused portfolio includes brands such as Pringles, Cheez-It, Pop-Tarts, Rice Krispies Treats, RXBAR, and Kellogg’s international cereal brands.
“Today marks a transformative moment and I’m excited to welcome Kellanova to Mars,” said Andrew Clarke, Global President of Mars Snacking. “United by more than a century of pioneering new categories and building iconic brands, Mars and Kellanova are joining forces to shape the future of snacking.
“With more than 50,000 Mars Snacking Associates and partners around the world, we’re now positioned to bring consumers more of the brands they love and new innovations—while continuing to advance our sustainability commitments and invest for the long term.”
The transaction brings Kellanova into the Mars Snacking business segment, expanding Mars’ presence across multiple snacking categories. As a result of the acquisition, Mars Snacking now includes Kellanova’s billion-dollar brands alongside existing Mars brands such as SNICKERS, M&M’S, TWIX, DOVE, SKITTLES, EXTRA, KIND, and Nature’s Bakery. The acquisition also expands Mars Snacking’s Accelerator division with the addition of brands including RXBAR, Nutri-Grain bars, and Special K bars.
Kellanova was formally known as the Kellogg Company until October 2, 2023, when the firm completed the separation of its North American cereal business, WK Kellogg Co., resulting in the creation of two separate public companies.
Kellonova is focused on international cereals, snacks and various food products, and owns many of the world’s top food and snack brands. Those include snacks like Pringles, Cheez-It, Pop-Tarts, Rice Krispies Treats, NutriGrain and RXBAR snack bars, and food brands like Eggo waffles and Morningstar Farms products.
Under the Kellogg brand, the company has achieved a long record of growth for over a century. By 2023, Kellanova logged Net Sales of more than $13 billion, with a presence in 180 markets and approximately 23,000 employees.
At the time, the company said the separation was undertaken to provide a better operational focus for each of the two companies.
Kellanova’s portfolio certainly complements the Mars portfolio of brands, which includes billion-dollar snacking and confectionery products like Snickers, M&Ms, Twix, Dove, and Extra, as well as Kind and Nature’s Bakery. Mars also has 10 pet care brands that boast more than $1 billion in sales.
Mars employs 150,000 people over its various divisions, and achieved more than $50 billion in net sales in 2023. The two companies combined will take up a lot of shelf space, with combined sales of $63 billion.
“This is a truly historic combination with a compelling cultural and strategic fit,” said Steve Cahillane, chairman, president and CEO of Kellanova, in a statement in August. “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.”
Upon completion of the transaction, the parties say Kellanova will become part of Mars Snacking, led by Global President Andrew Clarke and headquartered in Chicago, allowing Mars to bring even more top brands to its global consumers.
Mars says it intends to apply its proven brand-building approach to further nurture and grow Kellanova’s brands, including 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,” said Andrew Clarke, Global President of Mars Snacking.
“Kellanova and Mars share long histories of building globally recognized and beloved brands,” he added. “The Kellanova brands significantly expand our snacking platform, allowing us to even more effectively meet consumer needs and drive profitable business growth. Our complementary portfolios, routes-to-market and R&D capabilities will unleash enhanced consumer-centric innovation to shape the future of responsible snacking.”