Mars acquires the manufacturer of Pringles: the confectionery giant enters the market of salty snacks

By: Trademagazin Date: 2024. 08. 15. 12:03

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Mars has announced that it will acquire a company called Kellanova, which is mainly known in Hungary for Pringles chips. The $36 billion transaction is all cash and, including debt, is the largest acquisition deal globally this year. With this step, Mars wants to strengthen not only the sweets market, but also the salty snacks market.

Mars would finance the acquisition partly from its own cash and partly with the help of a $29 billion bridging loan. However, the deal is still awaiting the approval of Kellanova’s shareholders, but the largest owners have already indicated that they support the transaction.

Through the acquisition, Mars can further strengthen its international presence, and according to their plans, Kellanova will be part of the Mars Snacking division, which the company would double by the end of the decade. If the deal is completed, Mars will have a stronger presence in the salty snacks market, creating new opportunities for the company. Kellanova, which is successful in the production of other salty snacks in addition to Pringles, can bring significant expansion to Mars in this segment. The Pringles brand has performed exceptionally well this year, with its shares up 38 percent since the beginning of the year, largely due to the outsourcing of the cereal business and the new strategy.

With this acquisition, Mars not only expands its product range, but can also strengthen itself in the global market. The company’s goal is to become a dominant player in the salty snacks market and thus have a more balanced portfolio that can be more resistant to the slowdown in consumption experienced worldwide.