10:35 AM EDT, 08/14/2024 (MT Newswires) -- Kellanova ( K ) on Wednesday agreed to be acquired by confectionery and pet food company Mars in an all-cash deal worth $35.9 billion, including assumed net leverage.

Mars will pay $83.50 per share to buy the packaged food maker, which owns brands like Pringles and Cheez it, the companies said in a joint statement. The price consideration represents a premium of roughly 33% to Kellanova's ( K ) share price on Aug. 2, the last trading day before media speculation began about a potential transaction. Kellanova's ( K ) stock advanced 7.4% in Wednesday trade.

The deal encompasses all of Kellanova's ( K ) brands, assets and operations, including its snacking brands, international cereal and noodles portfolio, North American plant-based foods and frozen breakfast. Mars, which owns confectionary brands such as Snickers and M&M's, plans to finance the acquisition through a combination of cash-on-hand and new debt.

"This is a truly historic combination with a compelling cultural and strategic fit," Kellanova ( K ) Chief Executive Steve Cahillane said in the statement. "The transaction maximizes shareholder value through an all-cash transaction at an attractive purchase price."

The deal, which requires approval from regulators and Kellanova's ( K ) shareholders, is expected to complete in the first half of next year. W.K. Kellogg Foundation Trust and the Gund Family have agreed to vote shares representing 20.7% of Kellanova's ( K ) stock in favor of the transaction. Following completion, Kellanova ( K ) will become part of Mars Snacking.

"This is an exciting opportunity to create a broader, global snacking business, allowing Kellanova ( K ) and Mars Snacking to both achieve their full potential," according to Mars Snacking Global President Andrew Clarke. "The Kellanova brands significantly expand our snacking platform, allowing us to even more effectively meet consumer needs and drive profitable business growth."

Kellanova ( K ) completed the separation of its North American cereal business, WK Kellogg (KLG), in October.

In the beginning of August, the company lifted its adjusted earnings outlook for fiscal 2024 after recording better-than-expected second-quarter results. It operates in 180 markets and has about 23,000 employees, according to the Wednesday statement.

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