Candy Maker Mars Buys Pop-Tarts, Pringles Maker Kellanova for Nearly $36 Billion

Candy giant Mars has agreed to acquire Pop-Tarts and Pringles maker Kellanova (K) for $83.50 per share, or a total enterprise value of $35.9 billion, in what would be the biggest M&A transaction this year.

The purchase by Mars, which makes M&M’s and Skittles, was earlier reported to be imminent by The Wall Street Journal, which along with Reuters flagged the potential transaction earlier this month.

News of the deal sent the Kellanova’s shares up more than 7% in premarket trading to $80.03. They are up 37.6% this month. 

Deal Would Give Mars Access To Kellanova’s Snack Portfolio 

The deal by Mars for Kellanova, which was spun out of cereal-focused Kellogg last year, would expand the privately held firm’s access to snack foods.

The transaction is subject to approvals from Kellanova’s shareholders as well as regulators, and is expected to close in the first half of 2025, the companies said. Kellanova will continue paying quarterly dividends until the deal closes. 

According to data provider Dealogic, it would be the biggest M&A transaction this year and the largest deal in the food space since Heinz acquired Kraft Foods in 2015.