Mars Inc., the makers of M&Ms and Snickers, bought out Wrigley to the tune of $23 Billion. Wrigley, the maker of Juicy Fruit, Lifesavers, and Altoids will act as a subsidiary, but some products will merge. Genius investor Warren Buffett’s company Berkshire Hathaway will provide the upfront investment and loan to back the deal.
Mars Inc. is well known for its popular chocolate candy products such as Snickers, M&Ms, and Milky Way and everything that’s not Hershey’s. And, fortunately for those of you who are not too intrigued about the possibility of gum/chocolate combinations, the only casualties of the Mars corporation are the non-chocolate brands such as Starburst and Skittles, which will now be run by Wrigley. No big deal, those two are so close to being gum anyway. Especially a real tough old piece of Starburst, those things are chewier than the saltwateriest of taffies.
As part of the takeover, Mars will pay $80 for each Wrigley share held by investors. That equates to a 28% boost from Wrigley’s $62.45 price on Friday.
It’s good to see ole Warren Buffett back in the picture, making positive headlines again with Berkshire Hathaway. He hasn’t been in the good graces of many Wall Street types lately after mistakenly saying he thought all big financial service providers were ‘worthless.’ He had intended to say they would be ‘worth less’ now, compared to before. Big difference, Warren!
But the Oracle of Omaha, as Buffett is lovingly referred, is back on the front pages with his sweet tooth salivating over this Mars/Wrigley deal. I hope he’s getting a nice cut of all the strange new cross promotional candies soon to be in development. As gross as chocolate-covered gum sounds, it has a lot more appeal than “Peanut M&Ms Now With Altoids Stuck In There Too!”
Does any of this make you want to buy more candy? Let us know in the comments section.
CNN Money: Mars to pay $23B for Wrigley with help from Warren Buffett, April 28, 2008