David Clark’s Post

Mars Wrigley + Kellanova = SNACKING GIANT As a former employee of both companies I can see how this proposed merger could be a huge success. Both companies are people driven organisations, employing some amazing talent, whose every day actions are guided by some very similar principles. Both companies have created some powerhouse brands, that lead in their respective categories and play an important role in customer’s lives and their every day occasions. Both take a clear stance on sustainability, social responsibility, packaging waste and renewable energy. Both share very similar target audiences, key customers and share a lot of baskets together. With many mergers & acquisitions the term ‘economies of scales’, or worse yet ‘synergies’ are bandied around. Frequently you will see expected annual cost saving forecasts reported. Not in this case. There is unlikely to be huge saving to be had from a confectionery company buying a crisps and snacks manufacturer. Yes, there will be some from shared ingredients. But I think this is a lot more than just a ‘synergies’ acquisition. Mars and Kellanova share customers, share occasions and share similar missions. I think this merger (if it goes ahead) will focus more on satisfying shared customer needs, missions and journeys and on capitalising on each other’s strengths to better satisfy future demand. Exciting times. #Mars #Kellanova #merger #digitalcommerce #ecommerce #cpg #cpgindustry #fmcg #fmcgindustry #grocery #snacking #retail #food https://lnkd.in/eMzRkP4s

🚨 Big news in the snack world! 🚨 Mars, Inc. is making a major move by acquiring Kellanova, the snacking arm of Kellogg Company, for a whopping $36 billion. This strategic deal will supercharge Mars’ presence in the snack food market, adding powerhouse brands like Pringles and Cheez-It to its already impressive lineup. With this acquisition, Mars is set to redefine snacking on a global scale. 🌍🍫 #MergersAndAcquisitions #SnackingIndustry #MarsInc #Kellanova #BusinessGrowth #FoodIndustry Read more ⬇

Mars, Inc. is making a significant move to double the size of its snack business by acquiring Kellanova, a Chicago-based company, for approximately $35.9 billion. This strategic acquisition brings iconic brands like Pringles, Cheez-It, and Pop-Tarts under Mars’ umbrella, enhancing its snacking portfolio and global reach. The deal, which is expected to close in the first half of 2025, positions Mars to deliver more choice and innovation in the snacking industry while honoring Kellanova’s legacy. With this acquisition, Mars is set to expand its influence in the global snacking market, combining strengths to drive future growth and consumer-centric innovation. #SnackingInnovation #MarsAcquisition #BrandExpansion #GlobalGrowth #FoodIndustry #ConsumerProducts #Kellanova #StrategicGrowth #SnackBrands

Breaking News: Mars Inc. to acquire Kellanova in $29 Billion MegaDeal! Mars, the global leader in confectionery, food, and pet care, is set to acquire Kellanova, the iconic maker of Pringles and Pop-Tarts, for an eye-watering $29 billion. This historic deal, engineered by Mars' management team, will thrust the notoriously private Mars family, including Jacqueline Mars, into the spotlight. With brands like Snickers, M&M’s, Pedigree, and Whiskas already under their belt, this acquisition will further cement Mars' dominance in the snack industry. Aside Note: This mega move by Mars could potentially prompt Nestlé to make a significant acquisition of their own - it would be about time to do a leapfrog move ;-). After their landmark deal with Starbucks, the market has been waiting for another big play from the Nestlé kitchen. Could this be the spark they need to boost their share price? #MegaDeal #MergersAndAcquisitions #Mars #Kellanova #Nestlé #BusinessNews #FoodIndustry #fmcg #pringles #whiskas #kellogs #snickers #snacks #boldmove

𝐌𝐚𝐫𝐬' $𝟑𝟔 𝐁𝐢𝐥𝐥𝐢𝐨𝐧 𝐒𝐧𝐚𝐜𝐤𝐢𝐧𝐠 𝐏𝐨𝐰𝐞𝐫 𝐏𝐥𝐚𝐲: 𝐖𝐡𝐚𝐭 𝐘𝐨𝐮 𝐍𝐞𝐞𝐝 𝐭𝐨 𝐊𝐧𝐨𝐰 🍫🌍 In a major move poised to reshape the snacking industry, Mars, the owner of M&M's, is acquiring Kellogg’s spin-off, Kellanova, for a staggering $36 billion—valuing the deal at $83.50 per share. This strategic acquisition, set to close in the first half of 2025, will significantly expand Mars’ snacking portfolio by adding iconic brands like Pringles and Cheez-Its. 𝐊𝐞𝐲 𝐓𝐚𝐤𝐞𝐚𝐰𝐚𝐲𝐬: • Mars aims to strengthen its global snacking business through this acquisition, which combines its existing snack brands with Kellanova's portfolio. This move aligns with Mars' strategy to drive long-term growth by integrating recognized brands. • The acquisition will enhance Mars' market presence in China and Africa, leveraging its strong foothold in China and Kellanova’s strength in Africa, creating new growth opportunities in these regions. • While Mars anticipates that the merger will help manage input costs and mitigate price increases for consumers, there are concerns about potential antitrust issues. Consumer advocacy groups argue that this deal could lead to higher costs and reduced options for consumers. • The deal is likely to face rigorous antitrust reviews due to overlap in the candy bar market. Both companies have expressed confidence in navigating these regulatory hurdles and ensuring the deal's benefits outweigh potential concerns. • Kellanova, with 2023 net sales exceeding $13 billion, brings substantial revenue and popular products into Mars’ portfolio, promising enhanced synergies and efficiencies. 𝐖𝐡𝐲 𝐈𝐭 𝐌𝐚𝐭𝐭𝐞𝐫𝐬: This acquisition represents a transformative shift in the global snacking industry, bringing together two powerhouse portfolios to create a more robust and diversified market player. The merger is expected to deliver operational efficiencies and strengthen Mars’ position in a competitive market. However, it also raises important questions about market concentration and consumer choice, which will be closely monitored by regulators and stakeholders alike. The deal’s legal landscape is complex, involving potential antitrust scrutiny and regulatory challenges. With Mars and Kellanova operating in overlapping segments, the merger could attract significant regulatory attention to ensure compliance with competition laws.  #MergersAndAcquisitions #SnackingIndustry #MarsKellanova #LegalInsights https://lnkd.in/dz2KgJvA Disclaimer: The Content in this post is for informational purposes only derived from references and does not constitute any professional advice. We do not claim ownership of any data or Information referenced.

Big news in the food industry today! Mars, the family-owned candy giant known for beloved brands like M&M’s and Snickers, has announced a major acquisition. They are set to acquire Kellanova, the maker of popular snacks such as Cheez-It and Pringles, for approximately $35.9 billion. This deal, valuing Kellanova at $83.50 per share, represents a premium of about 44% over Kellanova’s 30-day average trading price. This strategic move will allow Mars to expand its footprint in the snacking industry, combining Kellanova’s iconic brands with Mars’ existing portfolio, which includes billion-dollar brands like SNICKERS®, M&M’S®, and TWIX®. The acquisition is expected to close in the first half of next year. Insights: Market Expansion: This acquisition will significantly enhance Mars’ presence in the snacking sector, allowing them to tap into new consumer segments and diversify their product offerings. Synergies: By integrating Kellanova’s strong brand portfolio, Mars can leverage synergies in marketing, distribution, and innovation, potentially leading to cost savings and increased market share. Competitive Edge: This move positions Mars to better compete with other major players in the snacking industry, such as PepsiCo and Mondelez, by broadening their product range and strengthening their market position. Growth Opportunities: The combined resources and expertise of Mars and Kellanova could drive future growth through new product development and expansion into emerging markets. #business #acquisitions #foodindustry

Well, this was not just a rumor apparently. Congrats to both companies and their advisors for getting this deal done.  Like all deals, time will tell if it was a good one or not. Many have written about the strategy, so there’s not much more to say beyond affirming the wisdom of this combination if you are Mars.  If, like me, you are still wondering about the price, especially for Kellogg’s, here’s some context. The self-reported EBITDA multiple on this deal is 16.4.  That seems a little rich when you look at Mondelez’s acquisition of Cadbury in 2010 (13x), or 3G’s acquisition of Heinz in 2013 (14x) or General Mills acquisition of Pillsbury in 2001 (11x). If you are a Kellogg’s shareholder and you look back at what you paid P&G for Pringles in 2012 (11x) or what you paid for Keebler in 2001 (10x), you are feeling great about this deal.  These businesses are some of the core assets Mars was after and Kellanova management has extracted tremendous value for them relative to the original investment. But if Kellanova shareholders have reason to be happy, I am not sure it is because Mars got fleeced.  Look at what Heinz/3G paid for Kraft in 2015 (20x), or what General Mills paid for Blue Buffalo in 2018 (25x).  Mars itself paid 17x for Wrigley back in 2008, Nestle paid 15x for Purina in 2001, and P&G paid 18x for Gillette in 2005. (BTW, for the M&A geeks who are silently critiquing this, I acknowledge the multiples above are not cost synergy adjusted and that has a material impact on price evaluation, but I have not seen any synergy estimate yet for Mars-Kellanova - and this is just a LinkedIn post, not real work, so discount my analysis as you see fit.) Hindsight tells us some of these deals were good and some not so much.  In the moment, knowledgeable observers could say which ones seemed reasonably priced and which seemed like overpayment.  I don’t claim special knowledge in this case, but Mars-Kellanova seems strategically sound and reasonably priced for the buyer, and a very happy premium for the seller. I think this will turn out well, and I’d love to hear what others think.

𝗧𝗵𝗮𝘁 𝘄𝗼𝘂𝗹𝗱 𝗯𝗲 𝗵𝘂𝗴𝗲 𝗻𝗲𝘄𝘀 𝗰𝗼𝗻𝘀𝗶𝗱𝗲𝗿𝗶𝗻𝗴 𝘁𝗵𝗲 𝘁𝗿𝗮𝗻𝘀𝗮𝗰𝘁𝗶𝗼𝗻 𝘀𝗶𝘇𝗲 (>$𝟮𝟱𝗯𝗻) & 𝘁𝗵𝗲 𝗰𝘂𝗿𝗿𝗲𝗻𝘁 𝗙𝗠𝗖𝗚 𝗠&𝗔 𝗺𝗮𝗿𝗸𝗲𝘁 (𝘁𝗵𝗶𝘀 𝘁𝗿𝗮𝗻𝘀𝗮𝗰𝘁𝗶𝗼𝗻 𝗮𝗹𝗼𝗻𝗲 𝘄𝗶𝗹𝗹 𝗲𝘅𝗰𝗲𝗲𝗱 𝗲𝗮𝗰𝗵 𝟮𝟬𝟮𝟯 & 𝟮𝟬𝟮𝟰 total 𝗙𝗠𝗖𝗚 𝗠&𝗔 𝘃𝗮𝗹𝘂𝗲!) Some could understand the rationales (complementary category & geographic footprint, at scale assets on savoury snacks) with significant potential synergies that would accelerate Mars journey into Snack This deal would be especially a good entry point into savoury snack that is the most attractive Snack category (largest, fastest growing, more profiable) with also a huge premium for scale. PepsiCo will appreciate And Mars has certainly both the balance sheet & the ownership structure to get this done But this transaction will have to beat the odds considering how difficult it is to deliver a return on mega deals (EV>$10bn) with most that ended up destroying shareholder value at scale in the FMCG industry over the last 15 years For more information, cf. our last M&A publication: 𝗙𝗠𝗖𝗚 𝗖𝗘𝗢𝘀: 𝟮𝟬𝟭𝟮-𝟮𝟮 𝗠&𝗔 𝗪𝗶𝗻𝗻𝗲𝗿𝘀 & 𝗟𝗼𝘀𝗲𝗿𝘀 𝗢𝗿 𝗕𝗿𝗲𝗮𝗸𝗶𝗻𝗴 𝗧𝗵𝗲 𝗖𝗼𝗱𝗲 𝗢𝗳 𝗦𝘂𝗰𝗰𝗲𝘀𝘀𝗳𝘂𝗹 𝗠&𝗔 𝗜𝗻 𝗧𝗵𝗲 𝗙𝗠𝗖𝗚 𝗜𝗻𝗱𝘂𝘀𝘁𝗿𝘆 https://lnkd.in/e_M7wisr Companies rarely die from starvation but rather from indigestion Time will tell for Mars Exciting times ahead 𝗔𝗯𝗼𝘂𝘁 𝘂𝘀: FF&A solves the most complex strategic problems of the world largest FMCG companies across Corporate Strategy, Organic Growth, Digital RTM (Ecommerce, DTC and EB2B) and M&A. 14 out of the world 20 largest FMCG companies are repeat Clients To access all our thought leadership, follow us & subscribe to our FMCG CEO newsletter: https://lnkd.in/ea4gy65y #fmcg #cpg The Coca-Cola Company Nestlé PepsiCo Mondelēz International Kraft Heinz Unilever Ferrero The Hershey Company Lindt & Sprüngli Kellanova WK Kellogg Co https://lnkd.in/eP_9dqnN