Mars to acquire Kellanova for US$35.9 billion in cash deal

On August 14, 2024, Mars, Incorporated agreed to acquire Kellanova, a global snacking leader, in a $35.9 billion USD ($47.6 billion CAD) cash transaction, broadening Mars' Canadian footprint. At $83.50 USD ($111 CAD) per share, the acquisition offered Kellanova shareholders a 44% premium to its 30-day average trading price, enhancing value. Both companies are active in Canada, with Mars bringing popular brands like SNICKERS, M&M’s, and ROYAL CANIN pet care, while Kellanova is known for Canadian-favorite brands such as Pringles, Cheez-It, and Eggo.

The acquisition aligned with Mars’ strategy to expand its snacking division, leveraging Kellanova’s popular products across Canadian and international markets. Expected to close in early 2025 following shareholder and regulatory approvals, Mars planned to use its expertise in brand growth to further Kellanova’s Canadian and global impact.

Financial advisors for Mars included Citi and J.P. Morgan, while Skadden, Arps, Slate, Meagher & Flom LLP and Simpson Thacher & Bartlett LLP provided legal counsel. Cravath, Swaine & Moore LLP advised Citi and J.P. Morgan on financing. Kellanova’s board received financial guidance from Goldman Sachs and Lazard, with legal support from Kirkland & Ellis LLP.

Merger & Acquisition
Other
$ 47,600,000,000
Active