Khadija Khartit’s Post

Major news in the FMCG world today - Mars and Kellanova have struck a historic $35.9 billion acquisition deal (14 times Ebita from last Qtr). This deal is one of the largest in packaged foods business since the Kraft and Heinz merger. Note Mars accquired Wrigley in 2008 for $23B. Will this move set to reshape the food manufacturing landscape? Mars’s acquisition of Kellanova is expected to complement its existing portfolio, which includes brands such as Snickers, M&M’s. In 2023, Mars reported net sales of more than US$50 billion, driven by its 150,000 associates across pet care, snacking and food businesses. Mars’s pet care portfolio includes the likes of Royal Canin, VCA, Pedigree, Banfield and Whiskas. As these giants combine forces. This will advance Mars’s strategic vision for the future of snacking. The integration of Kellanova’s brands will provide Mars with entry into new snacking categories, including the addition of billion-dollar brands Pringles and Cheez-It to its portfolio. The acquisition will also enhance Mars’s health and wellness offerings with products such as RXBAR and NutriGrain, aligning with global current consumer trends. Kellanova has their Better Days Promise initiative and Mars has their Sustainable in a Generation plan. Their combined impact will be significant in the world of food.

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

The big food news of the day is a potential Mars acquisition of Kellanova. Mars, of course, is the massive, privately held company known for M&Ms, Snickers and Twix. Kellanova, is the snacking side spinoff of Kellogg—the cereal side was left to sink or swim on its own, and we can see the results of that decision paying off. There's a lot going on here, but the biggest lesson I'm seeing is that the chocolate business cannot stand on its own. Mars, of course, already has other brands outside of chocolate. But the more it leans on chocolate, the more it leans on an unpredictable, climate change susceptible commodity. Kellanova, for its part, has a winning story to tell of its own: Right after PepsiCo said its snack sales were lagging, Kellanova reported the opposite. Do people prefer Pringles to Doritos? Not my personal preference, but I still say, the produce business is the way forward!! Here's our story on the news: https://lnkd.in/e-wAzjxN

𝗠𝗮𝗿𝘀’ $36 𝗕𝗶𝗹𝗹𝗶𝗼𝗻 𝗣𝗹𝗮𝘆 𝗳𝗼𝗿 𝗞𝗲𝗹𝗹𝗮𝗻𝗼𝘃𝗮: 𝗧𝗵𝗲 𝗦𝗻𝗮𝗰𝗸 𝗘𝗺𝗽𝗶𝗿𝗲 𝗘𝘅𝗽𝗮𝗻𝗱𝘀 🍫🍿 Mars is making a massive move in the snack world with its $36 billion acquisition of Kellanova. This deal not only reshapes the snack landscape but also signals Mars’ ambition to dominate the global snacking business. 🌍 𝗞𝗲𝘆 𝗛𝗶𝗴𝗵𝗹𝗶𝗴𝗵𝘁𝘀: Biggest Snack Deal of the Year: Mars is acquiring Kellanova, a spin-off from Kellogg, in a deal valued at $35.9 billion or $83.50 per share. This brings iconic brands like Pringles and Cheez-Its under Mars’ wing. 🥨🧀 𝗪𝗵𝘆 𝗧𝗵𝗶𝘀 𝗠𝗮𝘁𝘁𝗲𝗿𝘀: The acquisition follows Kellanova's 2023 spin-off from Kellogg, where its net sales topped $13 billion. This deal will allow Mars to broaden its snacking empire, integrating Kellanova’s popular brands with its existing lineup, including M&M’s and Kind bars. 𝗚𝗹𝗼𝗯𝗮𝗹 𝗘𝘅𝗽𝗮𝗻𝘀𝗶𝗼𝗻 𝗼𝗻 𝘁𝗵𝗲 𝗛𝗼𝗿𝗶𝘇𝗼𝗻: Mars plans to leverage this acquisition to expand its footprint in China and Africa, capitalizing on Kellanova’s strength in these regions. 🌏📈 𝗣𝗼𝘁𝗲𝗻𝘁𝗶𝗮𝗹 𝗔𝗻𝘁𝗶𝘁𝗿𝘂𝘀𝘁 𝗦𝗰𝗿𝘂𝘁𝗶𝗻𝘆: With this deal, Mars could control nearly half of all snack and cereal bar sales in the U.S. Some consumer advocacy groups are concerned about higher costs and fewer healthy options for shoppers. 🍫🍪 𝗪𝗵𝗮𝘁’𝘀 𝗡𝗲𝘅𝘁: The transaction is expected to close in the first half of 2025, pending regulatory approval with Citi acting as the financial advisor to Mars for this transaction. How do you think this acquisition will impact the snack industry? Will Mars face significant regulatory hurdles? Share your thoughts in the comments.🗨️ Source: CNBC #MergersAndAcquisitions #SnackingIndustry #CorporateFinance #InvestmentBanking #Mars #Kellanova #GlobalMarkets

Why did Colgate's stock take a 25% plunge? 🪥📉 Let’s uncover the factors behind this surprising drop and what it means for investors. Is it a buying opportunity or a red flag? 🤔💼 #StockMarketNews #ColgateStock #MarketAnalysis #NidhatriInfinite #InvestSmart #StockMarketTrends #InvestorInsights #FinanceBuzz #MarketMovers #InvestmentJourney #WealthBuilding #StockDrop #FinancialNews #MarketUpdate #InvestmentStrategy #SmartMoney #MarketInsights #GrowthAndDecline #InvestorEducation #StockAnalysis #WealthCreation #FinancialGoals #InvestmentTips #MarketOpportunities #BuildingWealth #LongTermInvesting #FinanceForAll #StockMarketIndia #StockPerformance #MarketWatch

Solving big problems often requires making up-front investments that may impact short-term performance. Take Lipton Tea's investment in training tea farmers to grow tea sustainably or Walmart's decision in 2016 to raise wages. While both investments raised costs and reduced earnings in the short term, they secured the future of their businesses and laid the foundation for future returns. This "worse before better" dynamic is a reminder that sometimes we need to prioritize long-term growth over short-term gains. #investments #futuregrowth #sustainability

In the biggest M&A deal of the year, Mars is going to buy Kellanova (the snack side of what used to be Kellogg) for nearly $36 billion. There's plenty to talk about here, but what I'm thinking about is that this will take Kellanova private. No more quarterly earnings reports or calls where executives have to answer tough questions from analysts. Kellanova has been pushing into developing markets, but we won't get to hear how that's going. People are buying less chocolate candy and salty snacks, but we won't hear the details from Mars / Kellanova now. Companies have shared where their inputs were going up and how much higher their prices were going. Something else we won't learn from this mega-company. Oh well. I guess they call it private for a reason. https://lnkd.in/geQTgxhb

I recently sat down on stage with Jason Buechel, CEO of Whole Foods Market and we discussed how emerging companies can differentiate themselves from their competitors in the marketplace, the value of a clear and powerful story when trying to reach eaters, and how brands can navigate an acquisition without losing sight of their mission. Listen here: https://lnkd.in/erZeAznZ.

🚀 New Analysis on Seeking Alpha 🚀 Excited to share my latest analysis on PepsiCo Inc. featured on Seeking Alpha! 🍿 Dive into why PepsiCo is a discounted gem with promising growth potential. https://lnkd.in/eqeTuVJe

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