Skip to content
Search
AI Powered
Latest Stories

Mars to buy Pringles maker Kellanova in £28bn deal

Mars to buy Pringles maker Kellanova in £28bn deal
Packages of white cheddar flavored Cheez-It crackers are seen on display at a store in New York City, U.S., August 5, 2024. REUTERS//Kent J. Edwards/File Photo
REUTERS

M&M's and Snickers maker Mars said Wednesday that it would acquire snack food business Kellanova, marking a multibillion dollar agreement set to result in a new industry giant.

The all-cash transaction would value Kellanova - which is behind snacks such as Pringles and Pop-Tarts - at $35.9 billion (£27.95bn), including debt.


“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,” said Mars chief executive Poul Weihrauch in a statement.

The announcement comes at a time when consumers feel the squeeze from rising costs of living, putting pressure on companies to rein in their price hikes.

The move could, however, attract scrutiny from US regulators who have taken a tough stance on consolidations.

The acquisition for $83.50 per share in cash "accelerates ambition to double Mars Snacking in the next decade, in alignment with global consumer demand trends," Mars said.

This would bring two new billion-dollar brands, Pringles and Cheez-It, into its business.

Already, the company said it has 15 billion-dollar brands.

“Snacking is a large, attractive and durable category that continues to grow in importance with consumers,” Mars added.

Kellanova had net sales in 2023 of around $13bn, and it is present in 180 markets with some 23,000 employees.

The Mars statement added that most of Kellanova's snack brands outperform competitors, especially among Gen Z and millennial buyers.

The combined portfolio would also be suited to meet demand in fast-growing markets such as Africa and Latin America, given their supply chains and local operations, the company said.

The plan, according to Mars, is to grow Kellanova's brands further.

The deal, which is anticipated to close in the first half of 2025, will need the green light from Kellanova shareholders and also require regulatory approvals.

Mars plans to fully finance the acquisition via a combination of cash-on-hand and new debt, it said, adding that commitments have been secured.

Family-owned business Mars said it employs about 150,000 workers and has over $50bn in annual sales.

Besides snacking and food products, the company is also involved in the pet care sector.

In 2022, Mars said it reached a deal to buy whole-fruit snacking brand Tru Fru. And two years before that, it announced its acquisition of Kind North America - which specializes in healthier snacks.

More for you

Britvic growth in annual revenue and profits

Strong numbers for Britvic

Britvic, the soft drinks manufacturer set to be acquired by Carlsberg, has posted robust annual results after investment in marketing and product innovation helped it maintain demand for its brands.

Over the year to Sept 30, the company’s pre-tax profits climbed 10.5 per cent to £173.2 million despite a £21.3m hit related to the proposed Carlsberg deal. Britvic stated that its growth was driven by both volume and price-mix, with strong demand for brands such as Pepsi, Tango, Lipton, MiWadi and Ballygowan.

Keep ReadingShow less
Met Police identifies four suspects in Post Office Horizon scandal

Met Police identifies four suspects in Post Office Horizon scandal

The Metropolitan Police has identified two new suspects in its investigation into possible criminal offences as part of the Post Office Horizon scandal. This takes the total number of individuals to four as the force also revealed it believes more suspects will be identified as the inquiry progresses.

Scotland Yard said members of the investigation team met with Sir Alan Bates, the leading Post Office campaigner, and fellow victims to update them on the development.

Keep ReadingShow less
Discover Britain's top hotspots for independent shops

(Photo by Chris J Ratcliffe/Getty Images)

Discover Britain's top hotspots for independent shops

New research by American Express Shop Small reveals the nation’s top 10 hotspots for independent shops, showcasing the small businesses and the valuable role they plan in their local communities.

American Express partnered with retail experts GlobalData to identify the top high streets for independent shops through ranking factors such as the number of independent outlets, variety of business types, and vibrancy of the high street.

Keep ReadingShow less
'Walkable high streets boost economy'
(Photo by Christopher Furlong/Getty Images)
Getty Images

'Walkable high streets boost economy'

Shoppers who walk and wheel spend more than those arriving by car, states a recent report, demonstrating the significant economic and social benefits of investing in walkable town centres, challenging traditional views on urban accessibility.

The findings published in third edition of "The Pedestrian Pound Report", recently published by Living Streets, the UK charity for everyday walking, come at a critical juncture for British high streets, with a record number of retail failures in 2022 and a vacancy rate of nearly one in seven by the end of 2023.

Keep ReadingShow less
Yvette Cooper

Home secretary Yvette Cooper speaking at the annual conference hosted by the NPCC and APCC on 19 November 2024

Photo: GOV.UK

Home secretary pledges to restore neighbourhood policing

Home secretary Yvette Cooper has announced plans to rebuild neighbourhood policing and combat surging shop theft as part of an ambitious programme of reform to policing.

In her first major speech at the annual conference hosted by the National Police Chiefs’ Council and Association of Police and Crime Commissioners on Tuesday, Cooper highlighted four of the key areas for reform: neighbourhood policing, police performance, structures and capabilities, crime prevention.

Keep ReadingShow less