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Mars, whose candy brands include M&Ms and Snickers, is exploring a potential purchase of Kellanova (NYSE:K).
There's no certainty that Mars will make an offer for Battle Creek, Michigan-based Kellanova (K), the maker of snacks such as Cheez-It, Pop-Tarts and Pringles, according to Reuters report on Sunday, which cited people familiar with the matter. It's possible that another buy could make an approach for Kellanova.
Kellanova (K), which split from WK Kellogg (KLG) last October, is valued at about $27 billion, including debt. The separation with WK Kellogg left Kellanova with snacks as well frozen breakfast foods such as Morningstar Farms and Eggo, as well an international cereal division.
A potential acquisition of Kellanova (K) would be the largest ever for Mars, far out surpassing the $9.1 billion acquisition of veterinary hospital operator VCA in 2017.
A potential Kellanova (K) deal comes after Reuters reported in early May that TOMS Capital Investment Management had taken a “significant” stake in the U.S. multinational food manufacturer,
Kellanova (K) reported Q2 earnings on Thursday, topping estimates on the top and bottom line, sending its shares up 7%. On the guidance front, Kellanova (K) boosted its organic sales guidance to 3.5% or higher and said it sees EPS of $3.65 to $3.75 vs. $3.62 consensus.
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