Mars has announced it’s agreed to acquire Kellanova in a major deal.

The deal was announced on Wednesday, with Mars set to acquire Kellanova for $83.50 per share in cash for a total consideration of $35.9 billion, including assumed net leverage. All of Kellanova’s brands, assets and operations, including its snacking brands, portfolio of international cereal and noodles, North American plant-based foods and frozen breakfast are included in the transaction.

“Kellanova has been on a transformation journey to become the world’s best snacking company, and this opportunity to join Mars enables us to accelerate the realization of our full potential,” said Steve Cahillane, Kellanova chairman, president and CEO, in an announcement about the deal.

In Canada, Kellanova’s brand portfolio includes Pringles, Cheez-It, Pop-Tarts, Rice Krispies Treats and Morningstar Farms. In 2023, Kellanova reported net sales of more than $13 billion, with a presence in 180 markets and approximately 23,000 employees.  

The acquisition will add two new billion-dollar brands — Pringles and Cheez-It — to Mars’ portfolio. It also adds snacking brands that outperform category competitors, particularly among Gen Z and Millennial consumers.

Kellanova was spun off from the Kellogg cereal division in 2023. Earlier this month, the multinational food company reported a Q2 net income of $344 million. While that figure was down 4% from the same period last year, it topped analyst expectations. 

Mars’ portfolio includes billion-dollar snacking and confectionery brands like Snickers, M&M’s and Dove. Mars also has 10 per cent care brands with more than $1 billion in sales, including Pedigree and Whiskas. 

Last year, Mars had a net sale of more than $50 billion, with more than 150,000 associates across its pet care, snacking and food businesses.

“The Kellanova brands significantly expand our snacking platform, allowing us to even more effectively meet consumer needs and drive profitable business growth,” Mars Snacking global president Andrew Clarke said. “Our complementary portfolios, routes-to-market and R&D capabilities will unleash enhanced consumer-centric innovation to shape the future of responsible snacking.”