Global FMCG giant Mars has entered an agreement to acquire Kellanova, dropping US$35.9 billion for the global snacking, cereal, plant-based foods and frozen breakfast foods business.

The deal will see Kellanova’s portfolio of brands, including Pringles, Cheez-It, Pop-Tarts, Rice Krispies Treats, NutriGrain, RXBAR, Kellogg's, Eggo and MorningStar Farms join Mar’s existing suite of snacking and confectionary brands like Snickers, M&M's, Twix, Dove, Extra, and Nature's Bakery.

The deal includes the full Australian business, which rebranded at a corporate level to Kellanova last year and is owned by the global parent company.

CEO and Office of the President of Mars, Incorporated, Poul Weihrauch, said: "In welcoming Kellanova's portfolio of growing global brands, we have a substantial opportunity for Mars to further develop a sustainable snacking business that is fit for the future. We will honor the heritage and innovation behind Kellanova's incredible snacking and food brands while combining our respective strengths to deliver more choice and innovation to consumers and customers. We have tremendous respect for the storied legacy that Kellanova has built and look forward to welcoming the Kellanova team."

Chairman, President and CEO of Kellanova, Steve Cahillane, said: "This is a truly historic combination with a compelling cultural and strategic fit. Kellanova has been on a transformation journey to become the world's best snacking company, and this opportunity to join Mars enables us to accelerate the realization of our full potential and our vision. The transaction maximizes shareholder value through an all-cash transaction at an attractive purchase price and creates new and exciting opportunities for our employees, customers, and suppliers. We are excited for Kellanova's next chapter as part of Mars, which will bring together both companies' world-class talent and capabilities and our shared commitment to helping our communities thrive. With a proven track record of successfully and sustainably nurturing and growing acquired businesses, we are confident Mars is a natural home for the Kellanova brands and employees."

Upon completion of the transaction, Kellanova will become part of Mars Snacking, led by Global President of Mars Snacking, Andrew Clarke. Mars intends to apply its proven brand-building approach to further nurture and grow Kellanova's brands, including accelerating innovation to meet evolving consumer tastes and preferences, investing locally to expand reach and introducing more better-for-you nutrition options to meet evolving consumer needs.

"This is an exciting opportunity to create a broader, global snacking business, allowing Kellanova and Mars Snacking to both achieve their full potential. Kellanova and Mars share long histories of building globally recognized and beloved brands. The Kellanova brands significantly expand our Snacking platform, allowing us to even more effectively meet consumer needs and drive profitable business growth. Our complementary portfolios, routes-to-market and R&D capabilities will unleash enhanced consumer-centric innovation to shape the future of responsible snacking,” said Clarke.

Mars, which is a family-owned business, last year reported net sales of US$50 billion. The company’s portfolio also includes 10 pet care brands, including Royal Canin, Pedigree, and Whiskas. The company has ambitions to double its Snacking business in the next decade, in alignment with global consumer trends.