August 19, 2024 | Consumer Discretionary | North America | Active

Kellanova / Mars: Deal Insight


Privately-held snacking giant Mars announced on 14-Aug-24 that it has entered into an agreement to acquire Kellanova, the savoury snack maker behind Pringles and Cheez-It crackers, for $35.9bn, in what is the largest M&A deal globally this year. Under the agreement, Mars is offering Kellanova shareholders $83.50 per share in cash, representing a 32.6% premium to the target’s undisturbed price on 2-Aug-24, the day before media reports surfaced concerning a merger. This is also a 46.5% premium to Kellanova’s share price on 2-May-24, when Reuters disclosed that activist investor TOMS Capital Investment Management had taken a ‘significant’ position in the company. The agreement, which is unanimously approved by Kellanova’s board, is subject to target shareholder approval and regulatory clearances, namely HSR, which is expected to be filed by 27-Aug-24. The WK Kellogg Foundation Trust and the Gund Family, who together hold ...



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