NEWS


Kennedy’s Bakery Production brings you all the latest news and developments in the baking industry. Got a story? Email editor@kennedys.co.uk


Nonni’s Bakery acquired by Ferrero-related company


Mars to acquire Kellanova in $35.9 billion deal


Mars, Incorporated has announced a


definitive agreement to acquire Kellanova for $83.50 per share in cash, totalling $35.9 billion,


including assumed net


leverage. This acquisition price represents a significant premium, approximately 44% above Kellanova’s 30-day volume-weighted average price and about 33% above its 52- week high as of August 2, 2024. The deal values Kellanova at a multiple of 16.4 times its last twelve months adjusted EBITDA as of June 29, 2024. Kellanova, renowned for its iconic snacking brands such as Pringles®, Cheez-It®, Pop- Tarts®, Rice Krispies Treats®, NutriGrain®, and RXBAR®, also boasts well-known food brands including Kellogg’s® (international), Eggo®, and MorningStar Farms®. With over a century of heritage, Kellanova reported net sales exceeding $13 billion in 2023 and operates in 180 markets with around 23,000 employees. Mars’ acquisition of Kellanova will bolster


its existing portfolio, which includes billion- dollar snacking and confectionery brands like SNICKERS®, M&M’S®, TWIX®, DOVE®, and EXTRA®, as well as KIND® and Nature’s Bakery®. Mars also manages a robust pet care segment with brands such as ROYAL CANIN®, PEDIGREE®, and WHISKAS®. In 2023, Mars achieved net sales of over $50 billion and employs more than 150,000 people globally. Once the transaction is completed,


Kellanova will be integrated into Mars’ Snacking division, led by Global President Andrew Clarke and based in Chicago.


A Ferrero-related company, CTH Invest SA, has announced that it has agreed to acquire Nonni’s Bakery from Vestar Capital Partners, a leading U.S. middle- market private equity firm. Founded in 1988, Nonni’s Bakery manufactures premium artisanal biscotti cookies and baked goods specialising in indulgent chocolate and inclusions-enhanced biscotti and “Cantuccini-type” cookies. In addition to its signature biscotti, Nonni’s Bakery’s portfolio includes brands such as Nonni’s THINaddictives, Nonni’s Bites, La Dolce Vita, and its recently launched Nonni’s Snackers. Nonni’s Bakery has leveraged its premium biscotti expertise rooted in its Italian heritage to become a leading biscotti company in the U.S. Based in


Wexford, Pennsylvania, the Company operates four manufacturing plants and has approximately 350 employees. The proposed transaction is expected to close in the coming months, subject to customary closing conditions.


Bakkavor’s net-zero targets validated by SBTI


Bakkavor Group’s suite of net-zero science-based targets has been approved by the Science Based Targets initiative (SBTi). This milestone follows Bakkavor’s significant achievement


of reducing


operational emissions by 23.2% in just two years, despite increased sales volumes during the same period. The Group aims for Net Zero carbon emissions across its full value chain (scopes 1, 2, and 3) by 2050, with near- and medium-term targets serving as checkpoints. Bakkavor’s targets, aligned with its


‘Trusted Partner’ ESG strategy, include reducing absolute Scope 1, 2, and 3 greenhouse gas emissions by 42% by 2030, based on a 2021 baseline. The company has already reduced its net operational (scopes 1 and 2) emissions by 23.3% since 2021. Bakkavor prioritises direct emissions reductions through energy efficiency and refrigeration upgrades.


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In the UK, Bakkavor is addressing refrigeration and natural gas emissions through engineering programs that include zero-carbon refrigerants, electrification, and heat recovery technologies. In the US, efforts focus on reducing high-carbon refrigerants and minimising leaks, while in China, the company is increasing the use of renewable energy via on-site solar and international renewable energy certificates. The SBTi’s approval confirms that Bakkavor’s targets align with the scientific consensus to limit global warming to 1.5°C, placing them among the most ambitious in the sector.


Kennedy’s Bakery Production August/September 2024


bakeryproduction.co.uk


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