Global candy and snack company Mars Incorporated, a major manufacturing presence in New Jersey for over 80 years, has announced a $35.9 billion deal to purchase snack manufacturer Kellanova, the maker of Pringles, Cheez-It, Nutra-Grain, Pop-Tarts and other popular brands.
The deal marks the largest in the food and beverage space since the $45 billion merger of Kraft Heinz in 2015. The purchase, which is projected to close in the first half of 2025, will provide Kellanova shareholders $83.50 per share.
Mars Incorporated, headquartered in McLean, Virginia, will be able to significantly expand its snacking products by acquiring Kellanova, which was spun off from Kellogg’s 10 months ago when that company split into two independently traded companies.
“This is an exciting opportunity to create a broader, global snacking business, allowing Kellanova and Mars Snacking to both achieve their full potential,” Andrew Clarke, global president of Mars Snacking in Chicago, said in a statement issued Wednesday.
“Kellanova and Mars share long histories of building globally recognized and beloved brands,” Clarke said. “The Kellanova brands significantly expand our snacking platform, allowing us to even more effectively meet consumer needs and drive profitable business growth.”
Kellanova CEO Steve Cahillane, who plans to exit the company after the deal goes through, said the acquisition will help its products expand in new markets.
“The transaction maximizes shareholder value through an all-cash transaction at an attractive purchase price and creates new and exciting opportunities for our employees, customers, and suppliers,” Cahillane said. “We are excited for Kellanova’s next chapter as part of Mars, which will bring together both companies’ world-class talent and capabilities and our shared commitment to helping our communities thrive.”
Mars has a deep history in New Jersey, opening its doors in Newark more than 80 years ago before moving to Hackettstown in 1958. In March, Mars announced an investment of more than $70 million in its Hackettstown site to support a Research and Development Innovation Studio, including a new test kitchen and packaging lab, as well as manufacturing and food safety efficiencies and advancements at its factory there.
