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Mars and Snickers chocolate bars are pictured in a shop in Martelange, Belgium on February 23, 2016. Confectioner Mars said on February 23, 2016 it was withdrawing its Mars and Snickers chocolate bars and Celebrations sweets from sale in several European countries. In addition to France, Mars said it was recalling the items from Britain, Belgium, Italy and Spain, after it had already withdrawn products from sale in Germany and Netherlands. The recall was made after a piece of plastic was found in Mars products. (Photo by JOHN THYS / AFP)
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 like Pringles and Pop-Tarts -- at $35.9 billion.
The deal "accelerates ambition to double Mars Snacking in the next decade, in alignment with global consumer demand trends," said Mars in a statement.
It added that the move would also bring two new billion-dollar brands, Pringles and Cheez-It, into its business.
"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 more than $13 billion, and is present in 180 markets with some 23,000 employees.
The 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.
