Brand News: Monday, April 28, 2008
Mars Bolsters Brand Portfolio through $23 Billion Acquisition of Wrigley
by Brad Sarna
The Wm. Wrigley Jr. Company and Mars, Incorporated, one of the world's leading confectionery and consumer goods companies, announced today that an agreement to merge has been reached in a transaction totaling approximately $23 billion. The deal expands Mars’ market share and bolsters its already strong brand portfolio. The combined organization will have a product portfolio containing 10 of the top 25 most powerful confectionery brands, according to the Top 100 Confectioners Power Brands study conducted by AbsoluteBrand LLC (formerly Intangible Business LLC) and published in Confectioner magazine. Brands that are now owned by Mars and ranked in the top 25 Power Brands include M&M's®, Snickers®, Altoids®, Orbit®, Dove®, Extra®, Juicyfruit®, Lifesavers®, Skittles®, and Double Mint®.
As a result of this transaction, Wrigley will become a private company and part of one of the world's premier family-owned companies. Mars, Incorporated has agreed to pay $80 cash for each share of Common Stock and Class B Common Stock of the Wrigley Company. The terms of the transaction have been unanimously approved by the Wrigley Board of Directors. Based on Wrigley's closing share price of $62.45 on April 25, 2008, and its three-month weighted average share price of $59.88, this price represents a premium of 28 percent and 34 percent, respectively, to the Company's stockholders. This price also represents 4.3 times Wrigley's 2007 net sales and over 35 times Wrigley's 2007 earnings per share. Mars, Incorporated, will acquire 100 percent of Wrigley's outstanding shares and all of its outstanding options will be cashed out. The Wrigley Company will operate as a separate, stand-alone subsidiary, keeping its headquarters in Chicago.