A box of Kellogg Co. Eggo brand frozen waffles is arranged for a photograph in New York.
Tiffany Hagler | Bloomberg | Getty Images
Mars will acquire Kellanova for $35.9 billion in cash, tying together some of the largest U.S. candy and snack brands, the companies announced Wednesday.
The M&M owner Mars is acquiring the Kellogg spinoff company for $83.50 per share, according to the press release. The addition of Kellanova, which separated from its parent company in 2023, will bring massive brands like Pringles and Cheez-Its to Mars’ snacking unit.
“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,” said Steve Cahillane, chairman, president and CEO of Kellanova, in a statement.
The move comes after Kellogg separated its business last year, with its cereal segment trading under WK Kellogg Co, and the remaining snacking and plant-based brands under Kellanova. Net sales in 2023 for Kellanova topped $13 billion.
After years of high inflation, some consumers are pulling back on spending and struggling to afford brand-name snacks, making acquisitions more attractive. Many grocers have leaned into private-label options to entice consumers who are looking for value.
Mars’ buyout aims to create a “broader, global snacking business” through recognized and popular brands, according to Andrew Clarke, global president of Mars Snacking.
“The Kellanova brands significantly expand our Snacking platform, allowing us to even more effectively meet consumer needs and drive profitable business growth,” Clarke said in a statement.
The growing snacking category includes brands marketed as healthier. Kellanova will bring products like RXBar and Nutri-Grain to the Mars business, complementing Kind and other Mars snacks, according to the release.
The transaction is expected to close in the first half of 2025, according to the release.
The acquisition comes after months of engagement with Toms Capital Investment Management, an activist fund run by Benjamin Pass which had amassed a sizeable stake in Kellanova, according to a person familiar with the matter. Toms Capital had been privately pushing Cahillane and Kellanova management to pursue strategic and organizational changes, the person said.
Toms previously mounted a campaign at Colgate in 2022, in collaboration with Dan Loeb’s Third Point.
— CNBC’s Rohan Goswami contributed to this report
Correction: Mars will acquire Kellanova for $35.9 billion in cash, the companies announced Wednesday. An earlier version misstated the day.