Mars Buys Wrigley for $23 Billion
The combined company is expected to have a strong foundation of brands in six core growth categories - chocolate, non-chocolate confectionery, gum, food, drinks and petcare, including M&M'S, Snickers, Dove, Mars, Orbit, Extra, Doublemint, Uncle Ben's, Pedigree, Whiskas, Royal Canin and Banfield. Mars will be transferring its global non-chocolate confectionery sugar brands, including Starburst and Skittles, to Wrigley.
"When this transaction is completed, we will be proud to welcome Wrigley's associates to our company," says Mars Global President Paul S. Michaels. "The strong cultural heritage of two legendary American companies with a shared commitment to innovation, quality and best-in-class global brands provides a great basis for this combination. We are looking forward to continuing on our path of growth by jointly developing those values even further."
Morningstar analyst Mitchell Corwin told Kansascity.com that the combined business of Mars and Wrigley will "become No. 1 in chocolate and No. 1 in chewing gum with a strong international presence and growth in emerging markets," rivaling chocolate makers Hershey Co. and Cadbury Schweppes Plc.
"For Mars, this would get them into the fastest growing area of confectionary,'' says Julian Lakin, an analyst at Mirabaud Securities in
The proposed transaction is subject to customary closing conditions, including approval by Wrigley stockholders and certain governmental and agency regulatory clearances. Both parties hope to close the transaction within six to twelve months. Following completion of the transaction, Bill Wrigley, Jr. will remain the executive chairman of Wrigley, reporting to Paul S. Michaels. He will work closely with Bill Perez, president and CEO, and the current Wrigley management team.