Mars to Spend $36B to Get a Lot Saltier

Mars is about to become an even bigger food behemoth after announcing "one of the largest food deals in years" on Wednesday, reports the New York Times. The privately owned maker of M&M's and Snickers will acquire Kellanova in an all-cash deal that values the company at $35.9 billion. Kellanova holds brands including Cheez-It, Pringles, and Eggo and was spun off from Kellogg's in 2023. The deal is slated to close in the first half of 2025 barring regulatory issues, which Reuters reports are not expected due to the companies' "limited [product] overlap." More:

• Another step in a new direction for Mars: The Times reports Mars has been pushing beyond candy, as evidenced by its acquisitions of Kind North America, the maker of Kind Bars; Nature's Bakery; and Trü Frü. It's also poured money into its pet business (it owns Iams).
• Echoes of Hershey: That chocolate maker similarly branched out into salty food by purchasing the parent company of SkinnyPop and Dot's Pretzels.
• By the numbers: The Wall Street Journal reports Mars will pay $83.50 a share for Kellanova, whose shares closed Tuesday at $74.50. Reuters reports that's a 33% premium to the share price at close on Aug. 2, when word of the potential deal first emerged. Kellanova had net sales of more than $13 billion last year, compared to Mars' $50 billion.

(More Mars Inc. stories.)