Mars, Wrigley create $23B candy giant

Published Tuesday October 7th, 2008

HARRISBURG, Pa. - Mars Inc. has closed a $23-billion deal to purchase chewing-gum giant Wm. Wrigley Jr. Co., the companies said yesterday, making the combined business the world's largest candy maker.

The deal brings together household names: Wrigley, a landmark in Chicago where the company began in 1891, and Mars, the privately held maker of Snickers, Skittles and M&Ms -- the candy-coated chocolates that are the world's best-selling chocolate candy brand.

At the end of yesterday, Wrigley's stock ceased trading publicly as the owner of one of the world's most popular chewing gum brands, Orbit, becomes a subsidiary of Mars. Its headquarters will remain in Chicago, and it will take over Mars' sugar candy brands, including Skittles and Starburst, as well as production facilities in Australia, the Czech Republic and Mexico.

Wrigley shareholders will receive $80 for each share after they approved the deal last month. Shares closed yesterday at $79.97.

The merger combines companies that have worldwide footprints and are powerhouses in separate parts of the confectionery sector, Wrigley in gum and Mars in chocolate candy. Combined, they will bump Britain's Cadbury PLC from the top candy-making slot.

The deal, announced in April, includes financing from famed investor Warren Buffett's company, Berkshire Hathaway Inc. Omaha, Neb.-based Berkshire received a $2.1-billion minority equity interest in the Wrigley subsidiary as part of the deal.

Please Log In or Register FREE

You are currently not logged into this site. Please log in or register for a FREE ONE Account.

Logged in visitors may comment on articles, enter contests, manage home delivery holds and much more online. Your ONE Account grants you access to features and content across the entire CanadaEast Network of sites.