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$23 Billion for gum

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  • $23 Billion for gum

    Does that include the twins?

    Mars Acquires Wrigley’s for $23 Billion

    Mars, the makers of M&M’s, announced a deal Monday morning to acquire the Wm. Wrigley Jr. Company, the chewing gum concern, for about $23 billion. The transaction would create a confectionery behemoth and could pressure rivals into a cascade of other mergers.

    The Mars-Wm. Wrigley Jr. deal has an unusually famous financier: Warren E. Buffett. Mr. Buffett’s Berkshire Hathaway is helping finance the transaction, Mars said Monday in a statement. Mr. Buffett has a history with iconic food and beverage businesses. He was an early investor in Coca-Cola and is already a candy owner in Sees Candies.

    Under the agreement, Wrigley will become a separate, stand-alone subsidiary of Mars. With $5.4 billion in sales, Wrigley is a world leader in gum and confections.

    Shareholders of Wrigley will receive $80 in cash for each share of stock, a premium of 28.1 percent premium over Friday’s closing price of $62.45.
    The deal has been approved by the boards of both companies.

    In a statement, Wrigley said Monday that Berkshire Hathaway would buy a stake worth $2.1 billion or about 10 percent.

    Shares in Wrigley were up about 20 percent on Monday.
    “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,” Paul S. Michaels, global president of Mars, said. “We are looking forward to continuing on our path of growth by jointly developing those values even further.”

    The merger could spark a wave of further consolidation: Hershey and Cadbury Schweppes have held talks for years, but have been unwilling to consummate a deal. They may feel pressure given the scale and scope of a Mars-Wm. Wrigley Jr. combination, which would bring together a big stable of brands with worldwide distribution.

    The sale price represents an enormous premium over Wm. Wrigley Jr.’s market value, which was $17.3 billion Friday.

    Among Wrigley’s brands are Extra, Orbit and Eclipse gums as well as LifeSavers and Altoids. Mars has M&M’s, Snickers, Starburst, Skittles and Twix. Mars also makes Uncle Ben’s rice products and pet food under the Pedigree brand.

    Mars is a tightly controlled, privately held company, one of the last in the confectionery business and one of the largest family controlled firms in the nation. It is controlled by the Mars family of northern Virginia. Forrest Mars Sr. created the recipe, and the first M&M’s were sold in 1941.

    Wrigley, similarly has a storied history, though it went public in 1923. The Wrigley family, originally of Philadelphia, became a major presence in Chicago, where the company has its headquarters. The family’s name famously adorns the Chicago Cubs baseball stadium.

    In addition to Berkshire Hathaway, Goldman Sachs and JPMorgan Chase also provided financing for the deal.

  • #2
    That gum hasn't tasted good for 100 years, yet everyone seems to love it.
    Former 2017 OFFICIAL SPONSOR of Braves' Fill-In Matt Adams,
    Jesus is . . .