M&M’s maker Mars is buying Kellanova, the maker of Cheez-It and Pop-Tarts, in an effort to broaden its snacking portfolio and expand globally in what is being termed the biggest deal of the sector.
Kellanova was created last year when the Kellogg Company split into two companies. Chicago-based Kellanova sells many of the former company’s most profitable brands, including Pringles, Eggo, Town House, MorningStar Farms and Rice Krispies Treats. It had net sales of more than $13bn last year and has about 23,000 employees.
The deal will give Mars significantly more buying power from suppliers and selling power in negotiations with grocers and other retailers, said Randal Kenworthy, a senior partner specialising in consumer products at the consulting firm West Monroe.
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