By James Myers, OAN Staff
Wednesday, August 14, 2024 9:48 AM
Candy company Mars is buying Keranova for $36 billion, combining some of the biggest candy and snack brands in the U.S., the companies announced Tuesday.
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M&M’s parent company Mars will acquire the Kellogg spinoff for $83.50 per share, according to a press release.
The addition of Keranova will add popular brands such as Pringles and Cheez-Its to Mars’ snack offering.
“Keranova has been on a transformational journey to become the world’s best snacking company, and this opportunity to join Mars will enable us to accelerate the realization of our potential and vision,” Keranova chairman and president Steve Cahillane said in a statement.
Kelanova was formed when Kellogg Company split into three companies in 2023. Kelanova sells some of the most profitable brands on the market, including Eggo, Townhouse, Morning Star Farms and Rice Krispie Treats, which collectively generated more than $13 billion in net sales last year and employ an estimated 23,000 people.
With inflation remaining high, consumers are being forced to curb spending and struggling to buy name-brand snacks, making acquisitions more appealing, while grocers are branching out into private-label options to attract value-seeking customers.
But sales of some of the company’s products, such as gum, have declined in recent years, and the deal could help Mars expand into areas where it needs growth.
“The big reason Mars is buying Keranova is that it will allow it to focus more on salty snacks, a segment where Mars has virtually no presence,” said Neil Saunders, managing director at GlobalData. “Sales of salty snacks are growing faster than confectionery, where Mars currently dominates.”
It would be the biggest deal in the sector since J.M. Smucker’s $5.6 billion acquisition of Hostess last year and one of the biggest in 2024 after Exxon Mobil’s $60 billion acquisition of Pioneer Natural Resources.
“The Keranova brand significantly expands our snacking platform, enabling us to more effectively meet consumer needs and drive profitable business growth,” Andrew Clark, global president, Mars Snacking, said in a statement.
The transaction is expected to close in the first half of 2025, according to the announcement.
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