Mars to Reshape Global Snacking Through Kellanov Merger

In a transformative deal that will reshape the worldwide snacking landscape, Mars has entered into a binding agreement to acquire Kellanov for $35.9 billion in total enterprise value. The transaction, valued at $83.50 per share in cash, is set to close in the first half of 2025, pending shareholder approval and regulatory clearances.

The Deal Structure and Financial Terms

The acquisition price represents a significant premium—approximately 44% above Kellanov’s 30-day average trading volume and 33% higher than the company’s 52-week peak as of early August 2024. On an EBITDA basis, the deal values Kellanov at 16.4x its latest twelve-month adjusted earnings.

This mega-merger marks one of the largest food industry transactions in recent years. Mars will finance the acquisition through existing cash reserves and newly arranged debt financing, with commitments already secured. Both companies’ boards have unanimously endorsed the arrangement, and major shareholders—including the W.K. Kellogg Foundation Trust and the Gund Family—have committed to voting their 20.7% stake in favor of the transaction.

Complementary Portfolios Create a Powerhouse

The merger unites two distinct but strategically aligned consumer food empires. Kellanov brings a formidable lineup of globally recognized snacking brands: Pringles and Cheez-It command significant market share in their categories, while Pop-Tarts, Rice Krispies Treats, NutriGrain, and RXBAR round out a portfolio that resonates with younger demographics. The company also owns cherished staples like Eggo waffles, international Kellogg’s cereals, and MorningStar Farms plant-based options.

Mars already dominates the chocolate and confectionery space with SNICKERS, M&M’s, TWIX, and DOVE, alongside modern wellness brands KIND and Nature’s Bakery. The combination immediately expands Mars’s presence into new snacking categories—particularly ready-to-eat breakfast items, nutritional bars, and savory crackers—segments where Kellanov excels.

The merged entity will now oversee 17 billion-dollar brands (adding Pringles and Cheez-It to Mars’s existing 15), positioning it to capture share across breakfast, on-the-go, and healthier snacking occasions.

Scale and Operational Reach

Kellanov generated $13 billion in annual sales across 180 markets with approximately 23,000 employees. Mars, operating 150,000+ people globally, recorded over $50 billion in revenue in 2023. The combined organization will operate at unprecedented scale in pet nutrition and snacking, with particularly strong footholds in premium pet care through ROYAL CANIN and VCA, alongside its animal health hospital network.

Post-close, Kellanov operations will integrate into Mars Snacking, led by Global President Andrew Clarke from Chicago—where Kellanov’s headquarters will remain. Battle Creek, Michigan, will continue as a core operational hub for the combined business.

Strategic Vision for the Next Decade

Mars has publicly committed to doubling its snacking division revenue over the next ten years. The Kellanov acquisition directly accelerates this objective by providing:

Category Expansion: Entry into high-growth segments including savory snacks, nutritional foods, and international noodle/cereal categories where Kellanov holds strong positions, particularly in Africa and Latin America where distribution networks remain underpenetrated.

Demographic Resonance: A significant portion of Kellanov’s snacking portfolio outperforms competitors among Gen Z and Millennial consumers—demographics Mars sought to strengthen. Brands like RXBAR and Pop-Tarts already demonstrate strong appeal to younger buyers.

Innovation Acceleration: Combining R&D capabilities enables faster development of better-for-you options, digital channel strategies, and consumer-centric products aligned with global wellness trends. The deal provides access to Kellanov’s scientific nutrition expertise, particularly relevant for health-focused segments.

Distribution Synergies: Kellanov’s routes-to-market in Europe, Asia-Pacific, and emerging markets complement Mars’s existing infrastructure, allowing both companies to distribute complementary products more efficiently through retailers and foodservice channels.

Cultural and Sustainability Alignment

Beyond portfolio fit, both organizations share values-driven operational philosophies. Kellanov’s “Better Days Promise” sustainability initiative aligns with Mars’s “Sustainable in a Generation” framework, both emphasizing environmental progress decoupled from business growth. The combined entity commits to Mars’s Net Zero carbon targets and responsible marketing standards.

Mars has demonstrated track record in acquiring and sustaining brands—the company successfully integrated KIND and Nature’s Bakery while preserving brand autonomy and reinvesting in innovation. Leadership indicated similar respect for Kellanov’s 100+ year legacy and talented workforce.

Market Reaction and Timeline

The transaction required Kellanov shareholder approval through a special meeting to be scheduled following proxy materials filing. No significant regulatory obstacles have been flagged as of announcement, though antitrust review in key jurisdictions will proceed through early 2025.

The deal enables Kellanov to realize its strategic vision of becoming “the world’s best snacking company” while providing Mars with immediate access to beloved heritage brands and new consumer occasions. For Mars shareholders, the acquisition represents expansion into adjacent, high-margin categories with proven consumer loyalty and international upside potential, particularly as snacking continues growing as a global eating occasion.