According to several news outlets, Mars is exploring the possibility of acquiring Kellanova, one of two companies formed when the former Kellogg Co. split in two in October 2023. The Kellanova business comprises the former Kellogg’s snacks business, including the Cheez-It, Pringles and Pop-Tarts brands, as well as its frozen breakfast foods and international cereal businesses.
If a deal was reached by Mars to buy Kellanova, it would rank as one of the biggest ever in consumer packaged foods, according to Reuters, with Kellanova’s market value of about $27 billion including debt.
Other companies might step in and approach Kellanova at this point, and sources told Reuters that there are no signals that a deal would be reached between Kellanova and Mars.
In February 2024, Kellanova spoke at the Consumer Analyst Group of New York meeting, and called its rough 2023 share performance disappointing — noting that it had delivered on its financial performance expectations. At that time, Kellanova called the shareholder results “an execution problem, not a brand problem.”
The company also played up the significant success of the Pringles brand and its growth opportunities, and discussed how it was taking the Pringles playbook to other brands like Cheez-It, for instance. Kellanova also saw significant opportunities in the international marketplace for its salty snacks.
Reuters had not received comments from either company at presstime.
