Mars buy Kellogg spin-off Kellanova in $30B deal
FILE - A basket of chocolate bars in the lobby at Allure Resort International Drive hotel. (Photo by: Jeffrey Greenberg/Universal Images Group via Getty Images)
Popular candy maker Mars is buying Kellanova, a recent snack spin-off of the Kellogg Co., in a deal costing nearly $30 billion.
Kellanova was created last year when the Kellogg Co. split into two companies. The acquisition would expand Mars’ reach into the salty snack category.
Sales of some of Mars’ products, particularly gum, have sputtered in recent years. The deal helps Mars expand into areas of growth as American snacking habits change.
Mars brands
Mars is the world’s leading manufacturer of chocolate, chewing gum, mints and fruity confections. Here are some of its well-known candy brands:
- 3 Musketeers
- Dove
- Lifesavers
- M&M’s
- Milky Way
- Skittles
- Snickers
- Starburst
- Twix
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Kellanova brands
- Cheez-It
- Pringles
- Eggo
- Town House
- MorningStar Farms
- Rice Krispies Treats
Business deal
Arun Sundaram, an analyst with investment research company CFRA, told The Associated Press that he expected U.S. anti-trust regulators to scrutinize the deal given the current backdrop of high food prices. But he said he believes it will ultimately go through because there is so little overlap between the portfolios of the two companies.
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Other companies have been adding salty snacks to their lineup in pursuit of changing American tastes. In 2017, candy bar maker Hershey acquired Amplify, the maker of Skinny Pop popcorn, for $1.2 billion. Four years later, Hershey spent another $1.2 billion for Dot's Homestyle Pretzel's.
Mars' purchase of Kellanova is expected to close in the first half of next year. Once it's complete, Kellanova will become part of Mars Snacking. Corporate headquarters will remain in Chicago.
Mars, headquartered in McLean, Virginia, is one of the largest privately held companies in the U.S.
It’s the biggest deal in the sector since J.M. Smucker bought Hostess for $5.6 billion last year, and among the largest of 2024 behind Exxon Mobil's $60 billion acquisition of Pioneer Natural Resources and Capital One Financial's $35 billion acquisition of Discover Financial Services.