In its many decades as a publicly traded company, Wrigley's stock has never before approached the $80-a-share mark, adjusting for share splits.
The transaction is aimed at strengthening and diversifying Mars' position in the confectionery business worldwide. Mars ranks as the world's largest chocolate maker by sales, with market share of 15%. And its total annual sales are $22 billion, the company claims.
A deal would expand Mars' global reach, already considerable, because Wrigley generates 70% of its sales outside of the U.S. Its products also include Extra, Eclipse and Orbit gums.
Changing competitive landscape
Pending completion of the Wrigley deal, Mars will manufacture everything from chocolates to chewing gum, drinks and pet-care products. Some of its brands will include M&Ms, Snickers, Pedigree, Wrigley's chewing gum and Altoids breath mints.
Mars will move its Starburst and Skittles brands to Wrigley, which will fold those sugar products into its Life Savers and Altoids portfolio.
The transaction brings together the Mars family of Northern Virginia and Wrigley family of Chicago.
Bill Wrigley Jr. will remain executive chairman of Wrigley, reporting to Paul Michaels, global president of Mars. He will work closely with Bill Perez, Wrigley's president and chief executive, and the chewing-gum maker's current management team, Mars said.
In recent years, Wrigley has expanded its offerings far beyond chewing gum.
In 2005, the company bought from
Kraft Foods Inc. (KFT) its candy assets, including Altoids and LifeSavers, for about $1.5 billion. Wrigley also recently purchased a Russian chocolate company.
The family-controlled company -- whose name is emblazoned on Chicago's Wrigley Building, which it owns, and Wrigley Field, which it does not -- was close to a deal to acquire Hershey in 2002 for about $12.5 billion, but talks fell apart at the 11th hour, The Wall Street Journal has reported.
Separately Monday, Wrigley's reported first-quarter net income rose 18% from a year ago to $168.6 million, while sales jumped 16% to $1.45 billion from the year-earlier quarter.
