Mars, Inc. is acquiring Kellanova, Chicago for approximately $35.9 billion. The acquisition underpins Mars’ ambition to double the size of its snack business in the next decade, according to the company.

The details of the agreement are that Mars will pay Kellanova shareholders $83.50 per share in cash for a total consideration just shy of $36 billion. Mars said it intends to finance the acquisition through a combination of cash-on-hand and new debt, for which commitments have been secured.

In return, Mars gets a business with such popular brands as Pringles, Cheez-It, Pop-Tarts, Rice Krispies Treats, Eggo and MorningStar Farms. In fiscal 2023, Kellanova had $13 billion in sales, employed approximately 23,000 and had a presence in 180 markets.

“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, chief executive officer and president of Mars. “We will honor the heritage and innovation behind Kellanova’s incredible snacking and food brands while combining our respective strengths to deliver more choice and innovation to consumers and customers.”

Once the acquisition is closed, Kellanova will become a part of Mars Snacking, which is in Chicago and led by Andrew Clarke, global president.

“The Kellanova brands significantly expand our snacking platform, allowing us to even more effectively meet consumer needs and drive profitable business growth,” Clarke said. “Our complementary portfolios, routes-to-market and R&D capabilities will unleash enhanced consumer-centric innovation to shape the future of responsible snacking.”

Other snack brands owned by Mars include Kind, M&M’s, Milky Way, Skittles, Snickers and others.

In announcing the agreement, Mars outlined several benefits of the acquisition, including expanding Mars’ snack portfolio with differentiated brands, untapped potential in international markets and the combining complementary capabilities that may unlock growth and innovation.

“This is a truly historic combination with a compelling cultural and strategic fit,” said Steve Cahillane, president and CEO of Kellanova. “Kellanova has been on a transformation journey to become the world’s best snacking company, and this opportunity to join Mars enables us to accelerate the realization of our full potential and our vision.”