Kellanova, which was spun off from Kellogg in 2023, surged Wednesday after Snickers-parent Mars announced it is acquiring the company in a deal worth around $36 billion.
Mars, which is privately held, reported Wednesday it will pay $83.50 per share for Kellanova in an all-cash deal, that along with assumed net leverage puts the acquisition at $35.9 billion. The price represents a 44% premium to Kellanova stock's unaffected 30-trading day volume weighted average price as of Aug. 2.
"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," Kellanova Chief Executive Steve Cahillane said in the news release Wednesday.
Kellanova brands include Pringles, Cheez-It, Pop-Tarts, Eggo waffles and others. Meanwhile, Mars is primarily known for M&M's and Skittles.
Kellanova stock jumped 7.7% to 80.21 during market action on Wednesday. On Tuesday, K shares edged up 0.7% to 74.50. The Wall Street Journal reported on Aug. 4 that Kellanova and Mars were in discussions.
Prior to Wednesday's trade, Kellanova stock had surged more than 28% so far this month.
Kellanova stock has an 88 Composite Rating out of a best-possible 99. Shares also have a 92 Relative Strength Rating and a 77 EPS Rating.
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