{"id":1483590,"date":"2024-08-14T15:30:00","date_gmt":"2024-08-14T19:30:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1483590"},"modified":"2024-08-14T15:30:00","modified_gmt":"2024-08-14T19:30:00","slug":"mars-candy-bars-to-buy-cheez-it-maker-kellanova-in-largest-package-food-deal-in-decade","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/mars-candy-bars-to-buy-cheez-it-maker-kellanova-in-largest-package-food-deal-in-decade\/1483590\/","title":{"rendered":"Mars Candy Bars To Buy Cheez-It Maker Kellanova In “Largest Package-Food Deal In Decade”"},"content":{"rendered":"

Mars Candy Bars To Buy Cheez-It Maker Kellanova In “Largest Package-Food Deal In Decade”<\/span><\/p>\n

\n

One of the largest food industry\u00a0mega-deals in nearly a decade was unveiled as snack giant Mars announced a deal to purchase\u00a0food maker Kellanova for nearly $30 billion. This marks one of the biggest M&A deals this year, second to\u00a0Capital One Financial’s agreement to purchase Discover Financial Services for $35 billion in February.\u00a0<\/p>\n

Family-owned Mars agreed<\/a> to pay $83.50 per share in cash for all outstanding equity of Kellanova, representing a total enterprise value of $35.9 billion.\u00a0<\/p>\n

<\/a><\/p>\n

“All of Kellanova’s brands, assets and operations, including its snacking brands, portfolio of international cereal and noodles, North American plant-based foods and frozen breakfast are included in the transaction,” Mars noted in a press release, adding it “intends to fully finance the acquisition through a combination of cash-on-hand and new debt, for which commitments have been secured.”\u00a0<\/p>\n

Late last year, WK Kellogg Co. spun off Kellanova, the company behind Pringles, Cheez-It, Pop-Tarts, Eggo, MorningStar Farms, and other brands that include\u00a0cereals and noodles.\u00a0Kellanova has been outperforming many of its peers, raising its\u00a0full-year guidance as new products and marketing efforts boosted sales in the second quarter.\u00a0<\/p>\n

Buying Kellanova will allow Mars, known for its\u00a0chocolate-heavy portfolio, including brands such as\u00a0Dove Chocolate, M&Ms, Life Savers, Skittles, Starburst, Twix, Orbit, and Milky Way, to expand into the\u00a0chips and crackers aisles at grocery stores. In other words, Mars will take a more significant market share of the snacking pie as consumers eat fewer sit-down meals and graze on junk food throughout the day.\u00a0<\/p>\n

“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,”\u00a0Mars Chief Executive Poul Weihrauch wrote in a statement.\u00a0<\/p>\n

Bloomberg Intelligence analyst Jennifer Bartashus said the deal is the “largest packaged-food deal in nearly a decade and could spur more M&A in the sector.”\u00a0<\/p>\n

Shares of Kellanova were higher at the start of the cash session, up above 7.5% to the $80 handle.<\/p>\n

<\/a><\/p>\n

“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,” said Kellanova CEO Steve Cahillane.\u00a0<\/p>\n

Jefferies analyst Rob Dickerson told clients, “Mars enhances its global snacking business, possibly raising competitive levels for other large food players.”\u00a0<\/p>\n

If the deal fails to secure regulatory approval, Mars must pay\u00a0Kellanova a termination fee of $1.25 billion.\u00a0<\/p>\n

This mega deal in the junk food space suggests these companies aren’t afraid of GLP-1s.\u00a0<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nWed, 08\/14\/2024 – 11:30<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/markets\/mars-candy-bars-buy-cheez-it-maker-kellanova-36-billion-largest-package-food-deal-decade<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Mars Candy Bars To Buy Cheez-It Maker Kellanova In “Largest Package-Food Deal In Decade” One of the largest food industry\u00a0mega-deals in nearly a decade was…<\/p>\n","protected":false},"author":0,"featured_media":1483591,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1483590","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1483590","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1483590"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1483590\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media\/1483591"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1483590"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1483590"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1483590"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}