Mars has acquired Kellanova, a leading manufacturer of snacks, international cereal and noodles, North American plant-based foods and frozen breakfast foods, in a US$35.9 billion deal.
The transaction was announced on August 14. Under the terms of the agreement, Mars will acquire all outstanding equity of Kellanova for US$83.50 per share in cash, including assumed net leverage. The transaction price represents a premium of approximately 44% to Kellanova’s unaffected 30-trading day volume weighted average price and a premium of approximately 33% to Kellanova’s unaffected 52-week high as of August 2.
All of Kellanova’s brands, assets and operations are included in the transaction. The agreement has been unanimously approved by Kellanova’s Board of Directors. The transaction is subject to Kellanova shareholder approval and other customary closing conditions, including regulatory approvals and is anticipated to close in the first half of 2025.
Kirkland & Ellis has represented Kellogg for almost 25 years, during which time the firm has advised on multiple transformative deals. Most recently, Kirkland advised Kellogg on the separation of Kellanova and its North American cereal business, WK Kellogg, into two independent publicly traded companies upon completion in October 2023.
Kellanova is home to iconic snacking brands including Pringles, Cheez-It, Pop-Tarts, Rice Krispies Treats, NutriGrain and RXBAR. With roots dating back more than 100 years, Kellanova has a rich legacy of quality and innovation. Kellanova had 2023 net sales of more than US$13 billion, with a presence in 180 markets and approximately 23,000 employees.