Mars to buy Kellanova, tying iconic American snack brands in single company

Aug. 14 (UPI) -- Mars announced Wednesday it had entered an agreement to purchase Kellanova in a $35.9 billion cash deal.

The deal in which Mars, makers of M&Ms, Snickers Twix, and Dove, will acquire Kellanova, a spinoff of the Kellogg Company responsible for products such as Pringles, Cheez-It, Pop-Tarts NutriGrain bars and Rise Krispies, for $83.50 per share represents a merging of major U.S. snackfood brands.

"In welcoming Kellanova's portfolio of growing global brands, we have a substantial opportunity for Mars to further develop a sustainable snacking business that is fit for the future," Mars' President and CEO Poul Weihrauch wrote in a company news release .

:ast year Mars saw more than $50 billion in net sales, while Kellanova, saw more than $13 billion in its own sales.

The well-known candy maker Mars in 2017 announced that it would acquire the national pet care chain VCA in what was a $7.7 billion sale in order to add to its already-large portfolio of pet care products.

Under the terms of the Kellanova agreement, Mars will acquire all outstanding equity for $83.50 per share in cash, representing a total enterprise value of $35.9 billion. Mars will also acquire all of Kellanova's vast brands, assets and company operations and its more than 150,000 employees.

Last year, the more than 100-year-old Kellogg Company revealed its plans to rebrand and split into two separate public companies, "Kellanova" and "WK Kellogg Co."

"This is a truly historic combination with a compelling cultural and strategic fit," company President and CEO Steve Cahillane wrote on Tuesday.

Kellanova's board of directors unanimously approved the agreement and it is expected to close within the first half of next year. Kellanova will soon be part of Mars Snacking and will then be headquartered in Chicago led by Global President Andrew Clarke.

Cahillane wrote that Kellanova "has been on a transformation journey to become the world's best snacking company." He said Kellanova's opportunity to join Mars "enables us to accelerate the realization of our full potential and our vision."

Currently the Global President of Mars Snacking and soon to be overseeing the Kellanova brands, Clarke said the two iconic companies "share long histories of building globally recognized and beloved brands."

"Our complementary portfolios, routes-to-market and R&D capabilities will unleash enhanced consumer-centric innovation to shape the future of responsible snacking," according to Clarke.