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Mars, whose candy brands include M&Ms and Snickers, is in advanced discussions to purchase snack-maker Kellanova (NYSE:K).
A deal could happen imminently, assuming talks don’t fall apart, according to a WSJ report late Sunday, which cited people familiar with the matter.
Assuming a typical M&A premium, Kellanova (K) may be valued at about $30 billion. Kellanova has a market cap of about $22 billion.
The WSJ report comes after Reuters earlier Sunday reported that Mars was considering a purchase of Kellanova (K), the maker of snacks such as Cheez-It, Pop-Tarts and Pringles.
Kellanova (K) was spun off from Kellogg last year. The separation with WK Kellogg (KLG) left Kellanova with snacks as well frozen breakfast foods such as Morningstar Farms and Eggo, as well an international cereal division.
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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