Kellanova Stock Surges on Confirmed Mars Takeover
Kellanova stock is trading notably higher Wednesday on news it will be acquired by Mars. Here's what you need to know.
Kellanova (K) stock is trading notably higher Wednesday on news Mars, the parent company of M&M’s and Snickers, will acquire the snack maker whose brands include Cheez-It and Pringles in an all-cash deal valued at $35.9 billion, including debt.
This works out to $83.50 per K share, a 12% premium to the stock's August 13 close at $74.50.
"In welcoming Kellanova's portfolio of growing global brands, we have a substantial opportunity for Mars to further develop a sustainable snacking business that is fit for the future," said Poul Weihrauch, CEO of Mars, in a statement.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Kellanova was spun off from Kellogg last year. In its latest earnings release, the company's revenue declined 4.7% year-over-year to $3.2 billion while its earnings per share increased 12.2% from the year-ago period to $1.01.
Mars is one of the largest private companies in the United States and is a global manufacturer of confectionery, food and pet food products. Its most popular brands include M&M’s, Snickers, Skittles and Wrigley's.
"We believe a transaction would further validate the power of Kellanova's brands and growth potential, both in North America and internationally," wrote Stifel analyst Matthew Smith. "The transaction would be the largest packaged foods transaction since the Kraft-Heinz merger."
Smith added that the pipeline for potential mergers and acquisitions of packaged food businesses is very full.
What does this mean for Kellanova investors?
According to the terms of the agreement, Kellanova shareholders will receive $83.50 in cash for each share they currently own. While the deal has already been approved by Kellanova's board of directors, it will still need shareholder approval. If you own K stock and have any questions, you can reach out to your broker.
Heading into today's session, Kellanova was up nearly 36% for the year to date on a total return basis (price change plus dividends). Yet, Wall Street is on the sidelines when it comes to the consumer staples stock.
According to S&P Global Market Intelligence, the average analyst target price for K stock is $71.57, representing a discount to current levels. Additionally, the consensus recommendation is a Hold.
Related Content
-
Healthy to 100: Secrets from Countries Where Retirees Age BestLongevity is a team sport, according to author Ken Stern. Here's the secret sauce for living long, healthy lives from countries like Italy and Japan.
-
My First $1 Million: Semiretired CPA, 68, San FranciscoEver wonder how someone who's made a million dollars or more did it? Kiplinger's My First $1 Million series uncovers the answers.
-
6 Overlooked Areas That Can Make or Break Your RetirementIf you're heading into retirement with scattered and uncertain plans, distilling them into these six areas can ensure you thrive in later life.
-
6 Overlooked Areas That Can Make or Break Your Retirement, From a Retirement Adviser
If you're heading into retirement with scattered and uncertain plans, distilling them into these six areas can ensure you thrive in later life.
-
I'm a Wealth Adviser: These Are the 7 Risks Your Retirement Plan Should AddressYour retirement needs to be able to withstand several major threats, including inflation, longevity, long-term care costs, market swings and more.
-
Stocks Struggle for Gains to Start 2026: Stock Market TodayIt's not quite the end of the world as we know it, but Warren Buffett is no longer the CEO of Berkshire Hathaway.
-
How New Investors Can Pick Their Perfect Portfolio, According to a ProSee what Cullen Roche has to say about finding your perfect portfolio as a new investor and his two-word answer on where he thinks the stock market is headed in 2026.
-
High-Net-Worth Retirees: Don't Overlook These Benefits of Social SecurityWealthy retirees often overlook Social Security. But timed properly, it can drive tax efficiency, keep Medicare costs in check and strengthen your legacy.
-
Do You Have an Insurance Coverage Gap for Your Valuables? You May Be Surprised to Learn You DoStandard homeowners insurance usually has strict limits on high-value items, so you should formally "schedule" these valuable possessions with your insurer.
-
If You'd Put $1,000 Into Lowe's Stock 20 Years Ago, Here's What You'd Have TodayLowe's stock has delivered disappointing returns recently, but it's been a great holding for truly patient investors.
-
Don't Trade After-Hours Without Reading ThisAre you a night owl or an early bird with a yen for active trading? Before you transact after-hours, consider these tips and potential traps.
