Mars to Acquire Kellanova, Maker of Cheez-It and Pringles, in $36 Billion Deal

Mars, the family-owned candy giant known for M&M’s and Snickers, announced on Wednesday its acquisition of Cheez-It and Pringles maker Kellanova in a nearly $36 billion deal, marking the largest transaction in the packaged food industry.

Read the Offical Letter about ‘Mars to Acquire Kellanova’: newsroom.kellanova.com

Mars will purchase Kellanova at $83.50 per share in an all-cash deal, which represents about a 33% premium over Kellanova’s closing price on August 2, prior to Reuters reporting Mars’ interest in acquiring the Pringles maker.

Kellanova’s shares rose about 8% to $80.45 in pre-market trading. According to a Reuters calculation, the equity value of the deal is approximately $28.58 billion.

This deal occurs as U.S. packaged food companies, including Kraft Heinz, Mondelez, and Hershey, experience slower sales growth, with cost-conscious consumers turning to cheaper, private label options instead of more expensive branded products.

This deal surpasses Mars’ $23 billion acquisition of Wrigley in 2008, uniting popular consumer brands like Mars’ Twix, Bounty, and Milky Way chocolates with Kellanova’s snack portfolio, including Pop-Tarts, Rice Krispies Treats, and Eggo frozen waffles.

The acquisition is unlikely to encounter significant antitrust issues, as there is minimal overlap between the product offerings of the two companies, according to legal experts consulted by Reuters.

After the deal’s completion in the first half of 2025, Kellanova will be integrated into Mars Snacking, which will be led by Global President Andrew Clarke and headquartered in Chicago.

Kellanova, which separated from WK Kellogg last October, focuses on salty snacks and sells cereal outside of North America. WK Kellogg retained the North American cereal business from the original parent company.

In 2023, Kellanova reported net sales exceeding $13 billion.

The Wall Street Journal first reported the deal’s terms on Tuesday.