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M&M's and Snickers maker Mars said Wednesday that it would acquire snack food business Kellanova, marking a multibillion dollar agreement set to result in a new industry giant.
The all-cash transaction would value Kellanova -- which is behind snacks like Pringles and Pop-Tarts -- at $35.9 billion.
The deal "accelerates ambition to double Mars Snacking in the next decade, in alignment with global consumer demand trends," said Mars in a statement.
It added that the move would also bring two new billion-dollar brands, Pringles and Cheez-It, into its business.
"Snacking is a large, attractive and durable category that continues to grow in importance with consumers," Mars added.
Kellanova had net sales in 2023 of more than $13 billion, and is present in 180 markets with some 23,000 employees.
The statement added that most of Kellanova's snack brands outperform competitors, especially among Gen Z and millennial buyers.
The combined portfolio would also be suited to meet demand in fast-growing markets such as Africa and Latin America, given their supply chains and local operations, the company said.
The plan, according to Mars, is to grow Kellanova's brands further.