Mars, Incorporated is set to expand its snacking portfolio by acquiring Kellanova for $35.9 billion.

Kellanova, which was formed last year after Kellogg’s spun off its global snacking and plant-based food business, offers brands including Pringles, Cheez-It, Pop-Tarts, Rice Krispies Treats, NutriGrain and RXBAR, as well as including Kellogg’s (international), Eggo and MorningStar Farms. In 2023, Kellanova logged net sales of more than $13 billion, with a presence in 180 markets and approximately 23,000 employees.

Kellanova’s portfolio complements the existing Mars portfolio, which includes billion-dollar snacking and confectionery brands such as Snickers, M&M’S, Twix, Dove and Extra, as well as KIND and Nature’s Bakery. Mars also has 10 pet care brands with over $1 billion in sales. With more than 150,000 associates across its petcare, snacking and food businesses, Mars had 2023 net sales of more than $50 billion.

“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,” says Poul Weihrauch, CEO and office of the president, Mars, Incorporated. “We will honor the heritage and innovation behind Kellanova’s incredible snacking and food brands while combining our respective strengths to deliver more choice and innovation to consumers and customers. We have tremendous respect for the storied legacy that Kellanova has built and look forward to welcoming the Kellanova team.”

Upon completion of the transaction, Kellanova will become part of Mars Snacking, led by Global President Andrew Clarke and headquartered in Chicago. Mars intends to apply its brand-building approach to further nurture and grow Kellanova’s brands, including accelerating innovation to meet evolving consumer tastes and preferences, investing locally to expand reach and introducing more better-for-you nutrition options to meet evolving consumer needs.

Under the terms of the agreement, Mars will acquire all outstanding equity of Kellanova for $83.50 per share in cash. 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 intends to fully finance the acquisition through a combination of cash-on-hand and new debt, for which commitments have been secured.

The agreement has been unanimously approved by Kellanova’s Board of Directors. The transaction is subject to Kellanova shareholder approval and other customary closing conditions, including regulatory approvals, and is expected to close within the first half of 2025. The transaction agreement permits Kellanova to declare and pay quarterly dividends consistent with historical practice prior to the closing of the transaction.

The W.K. Kellogg Foundation Trust and the Gund Family have entered into agreements in which they have committed to vote shares representing 20.7% of Kellanova’s common stock, as of Aug. 9, in favor of the transaction.

After closing, Battle Creek, Mich. will remain a core location for the combined organization.

“This is a truly historic combination with a compelling cultural and strategic fit,” says Kellanova CEO Steve Cahillane. “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. The transaction maximizes shareholder value through an all-cash transaction at an attractive purchase price and creates new and exciting opportunities for our employees, customers and suppliers. 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. With a proven track record of successfully and sustainably nurturing and growing acquired businesses, we are confident Mars is a natural home for the Kellanova brands and employees.”