Mars buys Pringles crisps: 36 billion deal
It is the biggest business in the packaged food sector. And it has been driven by inflation
1' min read
1' min read
The candy bar giant Mars has announced that it will acquire Kellanova (the maker of the famous Pringles crisps) in a nearly $36 billion deal, making it the biggest deal in the packaged food sector.
The deal numbers say Mars will pay $83.50 per share in cash, a 33% premium over the 2 August close, before Reuters reported that Mars was exploring a deal for the Pringles maker.
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The deal for Kellanova comes at a time when packaged food sales in the US are challenging companies such as Kraft Heinz, Mondelez and Hershey, due to consumers' search for cheaper alternatives.
A process, the latter, that has stimulated negotiations in the industry, with the most prosperous companies looking to expand to cope with the impact of inflation, and also the boom in weight-loss drugs weighing on demand.
The deal, which surpasses Mars' $23 billion acquisition of Wrigley in 2008, would bring under one roof a number of popular brands including Mars' Twix, Bounty and Milky Way chocolates and Kellanova's Pop-Tarts, Rice Krispies Treats and Eggo frozen waffle portfolio.
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