Mars’ $5bn Acquisition of KIND North America

By Christopher Shim, Adit Rajeev (University of Cambridge) Mariona Planella Boix, Pau Rodríguez Coll, Ismael Fathy Martínez (ESADE)

 

Overview of the deal


Acquirer: Mars, Incorporated

Target: KIND North America

Implied Equity Value: $5 Billion

Total Transaction Size: Not Disclosed

Closed date: November 17, 2020

Target advisor: Not Disclosed


Mars Inc will be acquiring KIND LLC in a bid to gain access to KIND’s operations across 35 countries and thus extend its global reach. While the terms of the deal have not been disclosed as of November 17, 2020, what has been confirmed is that an agreement was reached between both parties stating that KIND LLC will operate as a separate business within Mars’ global operations. In addition, those familiar with this acquisition commented that the deal valued KIND at about $5 billion. This deal comes at around three years after Mars Inc bought a minority stake in KIND in a bid to expand their reach in the consumer market for health foods, and KIND LLC’s founder Daniel Lubetzky will retain financial stake in his company following the acquisition.


“KIND is gaining a lot of traction globally, but it’s just taking longer than we would have liked.” - Daniel Lubetzky, Founder of KIND North America

Company Details: Acquirer – Mars Inc


Mars Inc is a multinational manufacturer based in the United States specialising in packaged food products ranging from beverages, confectionaries, pet food and animal care services. Mars Inc serves customers on a global level and has five key business segments, which are namely: Mars Wrigley Confectionery, Mars Petcare, Mars Food, Mars Drinks, and Mars Symbioscience.


Founded: 1952

Headquarters: McLean, VA

CEO: Grant F. Reid

Number of Employees: 130000


Company Details: Target - KIND LLC


KIND LLC is also a multinational manufacturer based in the United States, and its lines of business mostly includes the wholesale distribution of groceries. As of May 2019, it offers eight lines which are namely KIND PLUS, KIND Fruit & Nut, KIND Healthy Grains Bars, STRONG & KIND, KIND Frozen, KIND Healthy Grains Clusters, KIND Breakfast, Pressed by KIND, and KIND Nuts & Spices.


Founded: 1998

Headquarters: New York, NY

CEO: Michael J. Barkley

Number of Employees: 500


Projections and Assumptions

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