Mars to Acquire Maker of Pringles, Cheez-It and Eggo in $36 Billion Deal

DealBook|Makers of Snickers and Pringles to Merge in $36 Billion Food Deal

Mars, the company behind M&M’s and Snickers, has agreed to acquire Kellanova, the snack food business spun off by Kellogg’s last year, in a multibillion-dollar deal that will create a new global food giant.

The acquisition, one of the largest food deals in years, was announced on Wednesday. It values Kellanova at $35.9 billion, including debt, a hefty premium to the company’s market value before news of the deal first began to leak.

Kellanova owns a large menu of brands including Cheez-It, Pringles and Eggo.

Mars, which is privately owned, has tried to broaden beyond sweets. In 2020, it bought Kind North America, the company that makes Kind Bars. Mars, best known for its chocolate candies, has also invested heavily in its sizable pet business, which includes the pet food brand Iams, as well as animal clinics and hospitals.

A deal for Kellanova would allow Mars to offer an array of both salty and sweet food. It would echo a strategy undertaken by Hershey, with its acquisition of the parent company of SkinnyPop and Dot’s Pretzels.

“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,” Poul Weihrauch, the chief executive of Mars, said in a statement.

Kellanova was once owned by the cereal giant Kellogg’s, which separated its snack business from its cereal brands last year. It renamed the cereal business WK Kellogg and its snack food business Kellanova.

Kellanova, which says it operates in 180 markets, generated more than $13 billion in revenue last year. It employs roughly 23,000 people. Mars, with more than 150,000 employees, recorded more than $50 billion in sales last year.