Mars moves to deliver $35.9 billion Kellanova takeover including flagship Pringles brand
pic: Kellanova
A major strategic deal has been agreed by Mars, Incorporated, as it moves to complete $35.9 billion acquisition of Kellanova, the snacks spin-off division of Kellogg’s, including flagship brands, Pringles, Pop-Tarts and Rice Krispies Treats, reports Neill Barston.
Notably, as the US-based confectionery giant commented, the key move comes as it seeks to further expand its portfolio of global products adding to its core lines including M&Ms, Snickers, Twix, Dove and Extra brands.
The company made a significant showing at this year’s recent Sweets & Snacks Expo in Indianapolis, showcasing a number of key extensions to existing product series, including its Starburst, Skittles and M&Ms Peanut Butter options.
Significantly, the latest deal for Kellanova, which garnered $13 billion in sales last year across 180 markets, including other established brands such as Cheez-It, NutriGrain and RXBAR, as well as food bra including Kellogg’s (international), and Eggo and MorningStar Farms.
Period of key market movement
Moreover, it follows a trend in recent years of amalgamations and acquisitions of brands led by major players in the market that have sought to extend their presence on a global level, including Ferrero, Mondelez, Ferrara and Nestle.
Images: Pringles
Poul Weihrauch, CEO and Office of the President of Mars, Incorporated, believed the deal for the Pringles manufacturer would provide a firm platform for continued group-wide growth for its international businesses
He said: “In welcoming Kellanova’s portfolio of growing global brands, we have a substantial opportunity for Mars to further develop a sustainable snacking business that is fit for the future. We will honor the heritage and innovation behind Kellanova’s incredible snacking and food brands while combining our respective strengths to deliver more choice and innovation to consumers and customers. We have tremendous respect for the storied legacy that Kellanova has built and look forward to welcoming the Kellanova team.”
For his part, Steve Cahillane, Chairman, President and CEO of Kellanova, added that the deal would create a :historic combination” that offered a cultural and strategic fit, enabling its own future development.
He said: “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.”
As Mars confirmed, the deal will see Kellanova become part of Mars Snacking, led by Global President Andrew Clarke and headquartered in Chicago, allowing the business to bring even more beloved brands to more consumers globally.
Linked to the acquisition, the company added that it intended to further grow Kellanova’s brands, including accelerating innovation to meet evolving consumer tastes and preferences, including nutrition and better-for-you categories.
Andrew Clarke, Global President of Mars Snacking, commented: “This is an exciting opportunity to create a broader, global snacking business, allowing Kellanova and Mars Snacking to both achieve their full potential. Kellanova and Mars share long histories of building globally recognized and beloved brands. 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.”
