Mars Inc. said on Wednesday it would buy snacks giant Keranova, maker of Cheez-Its and Pringles, for about $36 billion.
If the acquisition goes through, Kelanoba, which was recently separated from Kellogg, will join the Mars family. According to Mars press release. The transaction is expected to “close in the first half of 2025.” If completed, Mars will acquire a portfolio of brands that have been synonymous with snacking for generations, including M&M's and Skittles.
With net sales of more than $13 billion in 2023, Keranova operates in more than 180 markets around the world. The company's strength lies in its diverse product offering, from classic snacks like Pop-Tarts and NutriGrain bars to MorningStar Farms plant-based foods.
In this photo illustration, a package of Skittles is placed on a table (Photo Illustration by Mario Tama/Getty Images)
“The Keranova brand significantly expands our snacking platform, enabling us to more effectively meet consumer needs and drive profitable business growth,” said Andrew Clark. AcquisitionAccording to a press release.
With the addition of the powerful brand of Keranova portfolioThis will significantly strengthen Mars' presence in the salty snacks segment, where it has previously had little exposure.
The acquisition reflects a broader trend in the snack industry, with companies expanding their portfolios to meet changing consumer tastes. As snacking habits continue to shift toward more diverse flavors, Mars' acquisition of Keranova will put it in a better competitive position against rivals like Hershey's. expansion For salty snacks.
“Mars is known for innovation and brand building, but Keranova has the global clout to bring more Mars products to more markets,” CFRA analyst Arun Sundaram said. According to Korean TVQ. (Related: Maps: Every state's favorite snacks revealed)
The $35.9 billion transaction represents a premium of approximately 44% to the “30-day volume-weighted average price, not including KelaNova,” according to a Mars press release. The transaction was unanimously approved by KelaNova's board of directors. Major shareholders, including the W.K. Kellogg Foundation Trust and the Gund family, have committed to voting in favor of the transaction.
The acquisition, if completed, is expected to face scrutiny from U.S. antitrust regulators. Given minimal overlap between the two companies' product lines and the lack of consensus among six antitrust lawyers and industry experts, the antitrust arguments are not expected to be successful in persuading a judge. said Reuters.