A Keranova sign outside the New York Stock Exchange on September 5, 2023.
AP
of stocks Keranova The stock closed up 16% on Monday following reports of takeover interest.
Mars Inc., M&M’s parent company, is in talks to buy the snack food company, CNBC’s David Ferber reported, and has also bought a rival candy company. Hershey They may also be interested in acquiring the company.
Keranova spokesman Chris Varner declined to comment to CNBC, citing company policy. Reuters first reported the news. Interest in Mars.
Ten months ago, Kellogg spun off its cereal business and created a new company. W.K. Kellogg The remaining division, renamed KeraNova in honor of its founder, included Pringles and Cheese-It, as well as the North American frozen foods division, which included Morning Star Farms.
Including Monday’s share price movement, Keranova’s market capitalization is now close to $25 billion.
RBC Capital Markets analyst Nik Modi said the potential deal could be a catalyst before the market opens on Monday and upgraded Keranova shares to outperform.
After years of price hikes, food companies’ sales growth has slowed as consumers cut back on spending, making acquisitions more attractive.
The Keranova acquisition would also bolster Mars’ snack food options. The family-owned company has large shares in confectionery and pet care businesses, but its snack food portfolio consists of just a few brands, including Kind.
