Snacking and food giant Mars has entered into an agreement to acquire Kellanova for $36 billion, bringing iconic brands like Pringles, M&M’s and Snickers under one roof.

The all-cash transaction, valued at $83.50 per share, represents a 33 per cent premium to Kellanova’s closing price on August 2.

Chicago, Illinois-based Kellanova is home to snacking brands such as Pringles, Cheez-It, Pop-Tarts, and NutriGrain, as well as food brands such as Kellogg’s, Eggo, and MorningStar Farms. The company posted net sales of more than $13 billion last year and has a presence in 180 markets.

Mars’ portfolio includes Snickers, M&M’s, Twix, Dove, Extra, Kind and Nature’s Bakery. The company also has 10 pet care brands with over $1 billion in sales, namely Royal Canin, Banfield, and Whishkas. Mars’ net sales exceeded $50 billion last year across its pet care, snacking and food businesses.

Mars CEO Poul Weihrauch said the acquisition provides a substantial opportunity to further develop a sustainable snacking business and to offer consumers more choices.

Upon completion of the transaction, Kellanova will become part of Mars’ Snacking division, led by global president Andrew Clarke and headquartered in Chicago. The segment accounted for $18 billion in revenue last year, and the company is targeting to double it over the next decade.

Mars plans to grow Kellanova’s brands further by accelerating innovation, investing locally to expand reach, and introducing better-for-you nutrition options.

The transaction is expected to close within the first half of next year, subject to Kellanova shareholder approval and regulatory approvals.