Kellanova to be acquired by Mars in a $36 billion deal.

• Mars, the owner of M&M, is purchasing Kellogg's spin-off company Kellanova for approximately $36 billion, or $83.50 per share.
• Kellogg's cereal business is now under WK Kellogg Co, while its snacking and plant-based brands are under Kellanova.
• Kellanova's 2023 net sales topped $13 billion.

The acquisition of some of the largest U.S. candy and snack brands for $35.9 billion in cash was announced by the companies on Tuesday.

Mars, the owner of M&M, is acquiring Kellanova, a spin-off company, for $83.50 per share, according to a press release. This acquisition will bring massive brands like Pringles and Cheez-Its to Mars' snacking unit.

Kellanova has been on a journey to become the world's best snacking company, and this opportunity to join Mars enables us to accelerate the realization of our full potential and our vision, said Steve Cahillane, chairman, president and CEO of Kellanova, in a statement.

Kellanova, the snacking and plant-based brands segment of Kellogg, reported net sales of $13 billion in 2023.

Due to high inflation, some consumers are cutting back on spending and finding it difficult to afford brand-name snacks. As a result, private-label options have become more appealing to consumers seeking value. Grocers have responded by offering private-label alternatives to attract price-conscious shoppers.

Mars' acquisition plans aim to expand its snacking business globally by leveraging well-known brands, as stated by Andrew Clarke, the global president of Mars Snacking.

"Our Snacking platform will be significantly expanded by Kellanova brands, enabling us to better serve consumer needs and achieve profitable growth," Clarke stated.

Mars will expand its snacking category with healthier brands such as RXBAR and Nutri-Grain, in addition to KIND, as announced in the release.

According to the release, the transaction is predicted to be completed in the first half of 2025.