April 29, 2008
Mars and Wrigley Agree to Join Candy and Gum Businesses
Mars' acquisition of Wrigley for $23 billion cash($80 per share, or a 28% premium)will create a huge privately owned company with many of the iconic brands in the candy and gum business (along with pet food and Uncle Ben's rice). While the deal surprised Wall St., Mars reportedly had its eye on Wrigley for some time. Wrigley has been a public company since 1923; the Wrigley family controls two-thirds of the supervoting shares, although Bill Jr. is the only family member active in the business. Warren Buffett's Berkskhire Hathaway is providing $4.4 billion in loans to finance the deal. The Wall St. Journal has a complete history of both companies. WSJ, Mars's Takeover of Wrigley Creates Global Powerhouse; NYTimes, Mars Offers $23 Billion Cash for Wrigley.
TrackBack URL for this entry:
Listed below are links to weblogs that reference Mars and Wrigley Agree to Join Candy and Gum Businesses: