Kelvin Ng ♻️’s Post

Someone told me one day, there is the AI, tech, and the noise we hear all hours from the new economy and there is an old economy, quiet, subtle, and huge, which is going in locksteps. Today is a story about this economy in a fun segment: "snacking" with: ✅ a $36 billion deal ✅ All-cash deal for $83.50 per Kellanova share ✅ Kellanova’s 2023 net sales topped $13 billion. ✅ The move comes after Kellogg separated its business last year, with its cereal segment trading under WK Kellogg Co, and the remaining snacking and plant-based brands under Kellanova. ✅ Acquisition expands Mars' snacking platform ✅ Shares up nearly 8% in early trade ( ofc all cash deal! you cannot go wrong with that!) #mergersandacquisition #mars #kellanova #foodsector #snacking #strategy #capitalmarkets #economy

According to the USDA, food prices in the US increased roughly 25% from 2019 through 2023, far more than other categories such as housing & medical. Packaged food companies face stalling growth after years of price hikes to cover sky-rocketing inflation. Mars (manufacturer Mars chocolate, TWIX & more) has agreed to acquire Kellanova (manufacturer for Pringles, NutriGran & more) for $83.50 per share in cash for a total consideration of $35.9 bn, including assumed net leverage. In 2023 Kellanova had net sales of over $13 bn, with a presence in 180 markets & approximately 23,000 employees. According to GlobalData Plc, in the US snacking market Mars has 4.54% share, whereas Kellanova holds approximately 3.9%. The deal is expected to be completed by the first half of 2025 & after that Kellanova will become a part of Mars Snacking. Furthermore there is a dedicated website providing ongoing information about the transaction between both companies👇 www.futureofsnacking.com #marschocolate #pringles #kellanova #breakfastcereal #packagedfood #mergersandacquisitions #retail #usretail #snacking

Interesting story in FT that Private Equity not interested in Unilever’s ice cream business. “an executive at one private equity firm [said] that [they] had explored a potential deal with Unilever, adding it was not clear how a buyout group could approach the business ‘differently to the current management’. They said that it would be difficult to make ice cream less of a seasonal product in Europe.” NSS!!!! 🤣🤣🤣 Haven’t these people heard of Baked Alaska ??? Honestly, buy an apple-pie company to go with it - I thought they were “mergers” experts ??? For a few quid l’ll give them sight of the thesis I wrote for the MBA I couldn’t finish in the mid ‘90s because I was usually hungover and I developed a rash on my neck from the polo neck sweaters that were obligatory in the case study classes. In it I proposed a business plan to extract value from “hitherto unspotted latent synergistic opportunities and early wins apparent in a merger”between the Fever Tree and Gordon’s brands … I proposed a classic sum-of-the-parts valuation (basically 3:1 - any more tonic and it is like club soda and any less and it takes the back of your throat out) I also suggested some bolt-on acquisition low hanging fruit we could finance via tranching - aka add a slice of lemon 😎

Mars Makes a Mega Munch: Kellanova Joins the Candy Kingdom In a deal that's as sweet as it is surprising, Mars, the confectionery giant behind iconic brands like Snickers and M&Ms, has announced its acquisition of Kellanova. This snack-tacular move, valued at a whopping $36 billion, is set to reshape the global snacking landscape. Kellanova, renowned for its portfolio of popular brands including Pringles and Pop-Tarts, brings a savory and crunchy dimension to Mars' already expansive candy empire. This strategic alliance promises to create a snacking powerhouse capable of satisfying cravings from sweet to salty, and everything in between. While the prospect of a combined Mars-Kellanova is  exciting for snack lovers, it also raises questions about potential market dominance and the impact on consumer prices. As this snacking sensation unfolds, industry watchers and consumers alike will be closely observing how this mega-merger will influence the variety, affordability, and innovation within the snack aisle. One thing's for certain: the days of simple snack choices are over. The Mars-Kellanova union is ushering in a new era of snacking supremacy, where the only limit is your imagination. What are your thoughts on this snacking sensation? Share your predictions for the future of the industry ? #Mars #Kellanova #SnackAttack #Merger #FoodIndustry #Business #ConsumerGoods #finance #marketing #mergers #acquisition 

🔔 Mars 𝐢𝐧 𝐀𝐝𝐯𝐚𝐧𝐜𝐞𝐝 𝐓𝐚𝐥𝐤𝐬 𝐭𝐨 𝐀𝐜𝐪𝐮𝐢𝐫𝐞 Kellanova 𝐢𝐧 𝐏𝐨𝐭𝐞𝐧𝐭𝐢𝐚𝐥 $30 𝐁𝐢𝐥𝐥𝐢𝐨𝐧 𝐃𝐞𝐚𝐥! 🚀 Family-owned giant Mars, known for iconic brands like M&M's and Snickers, is reportedly in advanced talks to acquire Kellanova, the maker of Pringles, Cheez-It, Pop-Tarts, Eggo waffles, and MorningStar Farms. This potential deal, valued at around $30 billion including debt, could be one of the largest transactions of the year and might come together imminently. 📈 This transaction alone will exceed each 2023 & 2024 total FMCG M&A value! Kellanova, spun off from Kellogg last year, has seen its shares surge 20% since the split. Despite this, they still trade at a discount compared to peers like Hershey and Mondelez International, making it an attractive target. 𝘛𝘩𝘦 𝘳𝘢𝘵𝘪𝘰𝘯𝘢𝘭𝘦 𝘧𝘰𝘳 𝘵𝘩𝘦 𝘢𝘤𝘲𝘶𝘪𝘴𝘪𝘵𝘪𝘰𝘯 𝘪𝘴 𝘤𝘭𝘦𝘢𝘳: complementary category & geographic footprint, significant potential synergies, and an accelerated entry into the highly attractive savoury snack sector—the largest, fastest-growing, and most profitable snack category. Mars, with its robust balance sheet and family-owned structure, is well-positioned to execute this deal. However, regulatory hurdles and competition from other potential suitors remain significant concerns. This would be Mars' largest acquisition ever, surpassing their $9.1 billion acquisition of VCA in 2017. #EcommerceNews #BusinessAcquisitions #FoodIndustry #Mars #Kellanova #MarketTrends #EmerceConsulting #MergersAndAcquisitions

The M&A Appetite in Food: A Strategic Outlook for 2024 Recent buzz around major food companies like Mondelēz and General Mills reveals a keen interest in accelerating M&A activities in 2024. While the focus shifts towards strategic "bolt-on" transactions for deeper category presence, an underlying narrative begs attention: the role of private funding sources in shaping the future of food industry M&A. The drive for acquisitions is clear, with industry leaders actively scouting the market for complementary deals. However, a critical aspect not fully explored is the pivotal role of private equity (PE) firms, venture capital (VC), and corporate investors in facilitating these transformative moves. Their involvement could be the linchpin in realizing many potential transactions that align with consumer trends and category expansions. The industry's cautious optimism, mirrored in executives' strategic patience and discipline amidst high asking prices, underscores the importance of aligning acquisition targets with long-term growth objectives. However, bridging the valuation gap remains a challenge, one that innovative funding and investment strategies could address. Private funding entities bring not only capital but also strategic resources and a network that can propel acquired companies to new heights. Their participation could catalyze more deals, especially in trending sectors like snacking, frozen foods, and health-conscious products. As we navigate the evolving landscape, the synergy between strategic corporate objectives and flexible, innovative financing will define success. The food industry stands at the cusp of significant transformation, where the right partnerships and funding mechanisms can unlock unprecedented growth opportunities. Let's discuss how we can leverage these insights for strategic M&A planning and execution in the food ingredients sector. Your thoughts and experiences are invaluable as we explore the dynamics of modern acquisitions and the untapped potential of private funding sources. #MandA #FoodIndustry #PrivateEquity #StrategicGrowth #Innovation

🚨FOOD INDUSTRY NEWS🚨 Unilever has kicked off initial discussions with buyout firms about a possible sale of its ice cream business, which could be worth as much as £15 billion ($19.4 billion), according to people familiar with the matter. The consumer goods company has started holding management presentations with potential bidders. Private equity firms Advent International, Blackstone, Cinven and CVC Capital Partners Plc are among those that have shown preliminary interest.🍦 #manda #icecream #sale #foodindustry #newsletter

Unilever Said to Start Sale Talks for £15 Billion Ice Cream Unit: Unilever has initiated discussions with private equity firms about selling its ice cream business. Potential Buyers: Firms showing interest include Advent International, Blackstone, Cinven, CVC CAPITAL PARTNERS LIMITED, Clayton Dubilier & Rice, and KKR & Co. Timeline and Process: + Management presentations have started. + A formal sale process is expected to begin in the second half of the year. + Discussions are still in early stages. Unilever's Strategy: + Part of CEO Hein Schumacher's plan to drive growth and improve performance. + Includes separating the ice cream arm and cutting 7,500 jobs. Ice Cream Division Details: + 2023 sales: €7.9 billion + Profit margin is less than half of Unilever's personal care unit. + Includes brands like Ben & Jerry's and Magnum. Context and Motivation: + Follows appointment of activist investor Nelson Peltz to Unilever's board. + Aims to streamline portfolio and improve overall company performance. + Would remove controversies related to Ben & Jerry's political stances. Industry Trends: + Private equity firms are keen on acquiring assets from large corporations. + Similar deals are occurring in the consumer goods sector. Unilever's History of Divestments: Previously sold margarine and spreads business to KKR in 2017. Sold tea unit to CVC in 2021. This potential sale represents a significant move in Unilever's ongoing efforts to restructure and improve its business performance. #Growth #Restructuring #Divestment #PrivateEquity #Business #Investment #Performance #IceCream I Bloomberg News I Swetha Gopinath I Dinesh Nair

And there it is... A few fun facts about Mars planned acquisition of Kellanova: - It would be the largest acquisition by a US food company since Kraft-Heinz in 2015. I wish them better luck. - If you were a Kellanova shareholder since day 1 (October 3, 2023), you would see a 42% increase in the value of your shares at $83.50. Not a bad return for return for 10 months. - Kellanova would have the shortest lifespan of any major food company in recent memory, so far just 10 months old. This beats Kraft Foods Group which existed for 3.5 years between its break from Mondelez and merger with Heinz. Given K's relatively flat share performance over this period (prior to the Mars news,) I don't think it will be missed. - With a combined ~$57B in annual sales, Mars+Kellanova has the potential to challenge Unilever for the #3 spot among global food company. A big move for Mars. Anton Vincent and Gabrielle Dallas Wesley, enjoy the ride! https://lnkd.in/ev-Sg9wz

Mars to acquire Kellanova in $36 billion deal. The M&M owner Mars is acquiring Kellogg spin-off company Kellanova in a deal valued at roughly $36 billion, or $83.50 per share. Kellanova’s 2023 net sales topped $13 billion. “We buy businesses to grow businesses, and we look to grow for generations,” Mars CEO https://buff.ly/3Aw3GVm said on CNBC’s “Money Movers.” #wealth #power #money #financing #investment #realestate #funding #vc #energy #fdi #growth #country #equity #fund #ZabCapitalHoldings