Mars Strikes $36 Billion Deal To Buy Cheez-It Owner Kellanova

HACKETTSTOWN, NJ — Family-owned candy giant Mars, with headquarters in Hackettstown, is preparing to shake up the candy industry with its most recent acquisition.

The nearly $36 billion deal, which will merge Mars with Cheez-It maker Kellanova (K.N.), will unite iconic brands from M&M's and Snickers to Pringles and Pop-Tarts, marking the largest deal of the year so far.

The Virginia-based company announced its deal with the multinational food manufacturer—formerly known as Kellogg Company—in joint press releases on Wednesday. Mars Inc. revealed that it will acquire Kellanova for $83.50 per share in cash, putting the total value of the transaction at $35.9 billion, including debt.

"This is a truly historic combination with a compelling cultural and strategic fit," Steve Cahillane, Chairman, President and CEO of Kellanova, said. "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."

Kellanova was established last year following the split of Kellogg Co. into two separate entities.

Based in Chicago, Kellanova handles many of Kellogg's most lucrative brands, including Pringles, Eggo, Town House, MorningStar Farms and Rice Krispies Treats. The company reported net sales exceeding $13 billion last year and employs approximately 23,000 people.

"This is an exciting opportunity to create a broader, global snacking business, allowing Kellanova and Mars Snacking to both achieve their full potential," Andrew Clarke, Global President of Mars Snacking, said. "Kellanova and Mars share long histories of building globally recognized and beloved brands. The Kellanova brands significantly expand our Snacking platform, allowing us to even more effectively meet consumer needs and drive profitable business growth."

The acquisition will substantially boost Mars' buying power with suppliers and enhance its negotiating strength with grocers and other retailers, according to Randal Kenworthy, a senior partner specializing in consumer products at the consulting firm West Monroe.

The deal will bring two new billion-dollar brands—Pringles and Cheez-It—into the Mars portfolio, which currently features 15 billion-dollar brands. Additionally, it will enhance Mars' health and wellness snacking range by incorporating complementary products such as RXBAR and NutriGrain, aligning with global trends and consumer preferences, officials said.

The deal is anticipated to close in the first half of next year. Once finalized, Kellanova will be integrated into Mars Snacking, under the leadership of Clarke.

The food merger mirrors a strategy employed by competitor The Hershey Company, which expanded its portfolio by acquiring SkinnyPop through the $1.6 billion purchase of Amplify Snack Brands Inc. in late 2017.

Mars has a rich history in New Jersey, beginning in Newark over 80 years ago and becoming a fixture in Hackettstown since 1958.

Earlier this year, the candy giant announced plans to invest over $70 million in its Hackettstown facility, including the development of a new Research and Development Innovation Studio with a state-of-the-art test kitchen and packaging lab.

The new studio will feature a new prototyping kitchen, packaging lab and collaboration space, company officials said.

"The continued investment in our Hackettstown site re-affirms our commitment to innovation in New Jersey and upskilling our associates with best-in-class facilities to create more moments of everyday happiness for our consumers," said Anton Vincent, President Mars Wrigley North America and Global Ice Cream.