USA – Kellanova shareholders have overwhelmingly approved the snack maker’s US$35.9 billion deal to be acquired by Mars.
During a special meeting on 1 November, over 99.5% of the 266.8 million votes cast supported the acquisition, according to Kellanova’s SEC filing.
Shareholders participating in the vote represented approximately 77.5% of Kellanova’s outstanding shares of common stock, according to the filing.
In another vote at the meeting, 58% of voting shareholders rejected the merger’s proposed executive compensation package, the filing said.
When the merger was announced on 14th August, Mars said adding Kellanova would help drive its plan to double the Mars Snacking business over the next decade.
Mars is known mainly for candy and chocolate brands like Snickers, M&M’s, Mars, Twix, Dove, Milky Way, 3 Musketeers, Skittles, Extra, Wrigley’s Doublemint, Life Savers and Starburst.
The acquisition would bring Mars into the cracker, salty snacks, bar and breakfast sections of the grocery store via such popular brands as Pringles, Cheez-It, Pop-Tarts, Rice Krispies Treats, Nutri-Grain and RXBAR, along with Eggo in the frozen breakfast category.
Kellanova business unit already includes 15 billion-dollar brands, and Kellanova would add another two – Pringles and Cheez-It – plus boost Mars’ presence in better-for-you snacks with the addition of brands like RXBAR and Nutri-Grain.
The acquisition process involved extensive negotiations, with Kellanova initially rejecting a US$77 per share offer. Weihrauch responded with two higher bids but threatened to walk away when Kellanova suggested $85. With three other bidders in the mix, Mars ultimately agreed to the final offer of US$83.50 per share in cash.
In the third-quarter results, Kellanova said that the transaction is expected to be finalized in the first half of 2025, now pending regulatory clearance and other customary closing conditions.
For the quarter, Kellanova’s net income rose 36% year-over-year, while organic net sales climbed 6.1%. The company didn’t provide any forward-looking guidance or hold a call with analysts because the quarterly report came on the eve of the shareholder vote.
Steven Cahillane, chairman, President and Chief Executive Officer, said the latest quarterly results reflect the company’s “more growth-oriented and profitable portfolio as Kellanova “executes at a high level as we prepare for our exciting next chapter as part of a global snacking powerhouse with Mars.”
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