M&M maker Mars agrees to buy owner of Kind snack bars

Mars, the maker of M&M candy and Ben’s Original rice, has agreed to acquire snack-bar maker Kind North America. Kind will become “a distinct and separate business within the Mars family of companies,” Mars said in a statement Tuesday. The companies had already partnered in an effort to expand Kind products into international markets. Kind founder and Executive Chairman Daniel Lubetzky will remain involved in the brand and retain a financial stake. The companies did not release financial terms. The New York Times, which earlier reported the deal, said Mars placed a $5 billion valuation on Kind, citing unidentified people familiar with the terms. Mars notes, maturing in April 2039 with a 3.95% coupon, have been steadily performing better than Treasuries for months, as part of a broad rally in corporate bonds. The notes traded at yields as high as 2.5 percentage points above Treasuries in March, but now are closer to 1.2 percentage points more, according to Trace bond trading data. The companies worked together over the past three years to bring the Kind brand to more than 35 countries and develop new products such as smoothie bowls and frozen bars. Kind, founded in 2004, has captured market share in the snacking category by marketing itself as healthier and touting simple ingredients without artificial sweeteners. Consumers have gravitated toward packaged food that’s marketed as natural and without additives in recent years. The brand will add another category to Mars’ roster of products, which range from Dove chocolates to Whiskas cat food. —Bloomberg News

M&M maker Mars agrees to buy owner of Kind snack bars

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