FoodDrink @FoodDrink: "Mars to buy Pringles maker..."

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Mars to buy Pringles maker Kellanova for $36 billion in 2024's biggest deal 🍫 Family-owned candy giant Mars is buying Cheez-It maker $K (Kellanova) in a nearly $36 billion deal, bringing together brands from M&M's and Snickers to Pringles and Pop-Tarts in the year's biggest deal to date. 🍫 Mars said on Wednesday it will pay $83.50 per share for Kellanova, representing about a 33% premium to its closing price on Aug. 2 before Reuters first reported that Mars was exploring a deal for the maker of frozen breakfast foods, such as Morningstar Farms and Eggo. 🍫 The deal is a bet on consumers continuing to indulge in branded snacks, and comes as packaged food companies face stalling growth after years of price hikes to cover sky-rocketing inflation. 🍫The combined company aims to hold prices steady, said Mars CEO Poul Weihrauch in an interview with Reuters Wednesday, and not pass on costs from the deal to consumers. "We are a big and stronger company," Weihrauch said. "We hope to be able to absorb more costs in our structure and help alleviate the issues we have in an inflationary environment." 🍫 Food prices in the United States increased roughly 25% from 2019 through 2023, far more than other categories such as housing and medical care, according to data from the U.S. Department of Agriculture. But inflation has started to moderate, according to the U.S. consumer price index data released Wednesday. 🍫 Consumers in the United States and Europe - major markets for both companies - have been looking for cheaper alternatives or ditching brands for cheaper private label goods. 🍫 The acquisition, which dwarfs Mars' $23-billion takeover of Wrigley in 2008 and is one of the biggest deals ever in the packaged foods industry, is not expected to face too many antitrust roadblocks due to the limited overlap in the offerings of the two companies, legal experts had told Reuters. 🍫 After the completion of the deal in the first half of 2025, Kellanova will become a part of Mars Snacking, led by Global President Andrew Clarke, the companies said. It will be based in Chicago. 🍫 Kellanova, which split from $KLG (WK Kellogg Co) last October, is rooted in a salty snacks business and sells cereal outside of North America. WK Kellogg was left with the North American cereal business of Kellogg, the original parent company. Since the separation from WK Kellogg, Kellanova's shares have traded at a discount to peers such as Hershey $HSY (Hershey Co) and $MDLZ (Mondelez International Inc) , which made the company an acquisition target. Read more ❓ www.reuters.com/business/retail-consumer/snickers-maker-mars-pay-8350-per-share-kellanova-wsj-reports-2024-08-14/ ✨ $K and $MDLZ is part of eToro’s @FoodDrink Smart Portfolio, a diversified portfolio focused on the various sectors of the Food and Beverage industry. It is composed of leading companies involved in different facets of the industry, from fast food, retailers, beverage, and food producers. The minimum investment amount for @FoodDrink is $500. Your capital is at risk. Past performance is not an indication of future results.

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Kellanova

KLG

WK Kellogg Co

HSY

Hershey Co

MDLZ

Mondelez International Inc

Kellanova

MDLZ

Mondelez International Inc

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