towards the creation of a snacking giant – L’Express

towards the creation of a snacking giant – LExpress

Announced this Wednesday, August 14, the acquisition of Kellanova – Pringles and Kellogg’s – by Mars results in the emergence of a giant with a cumulative turnover of 63 billion dollars (year 2023). “By welcoming Kellanova’s portfolio of growing global brands, we benefit from a huge opportunity for Mars to continue to develop a sustainable business in the snack industry,” noted Poul Weihrauch, CEO of Mars, quoted in a press release.

The group is offering Kellanova shareholders $83.50 per share in cash, a premium of about 44% to the average price over the past 30 days and 33% over the past year, as of August 2. That is before the Wall Street Journal did not mention this acquisition project on August 5. The chocolate bar giant plans to finance this operation with equity and by issuing debt, which has already been organized, it specifies in the press release. The transaction still requires the green light from Kellanova shareholders as well as regulatory authorizations. It is expected to be finalized during the first half of 2025.

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In June 2021, breakfast giant Kellogg’s announced plans to split into three companies, but ultimately opted for just two: WK Kellogg and Kellanova, which were born in October 2023. The former acquired the major cereal brands (Rice Krispies, Corn Flakes, All-Bran, Froot Loops, Special, etc.) while the latter obtained Kellogg’s branded snacks (Eggo, Nutrigain, Rice Krispies Treat, etc.) as well as Pringles, Cheez-It and Carr’s. These two independent companies are listed on the New York Stock Exchange, unlike Mars, which is a family-owned group.

The latter achieves an annual turnover of more than 50 billion dollars with its snack and confectionery brands (Snickers, M&M’s, Twix, Dove, Extra, Kind and Nature’s Bakery) and with ten brands in animal welfare (Royal Canin, VCA, Pedigree, Whiskas, Cesar, Sheba…). It employs more than 150,000 people. Kellanova, which has about 23,000 employees, has annual sales of more than $13 billion. In electronic trading before the opening of the New York Stock Exchange, Kellanova shares rose 7.34%.

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