Mars to Buy Out Buffett in Confectionery Deal
07 Oct 2016 --- Mars is planning to combine its chocolate and Wrigley segment to create Mars Wrigley Confectionery in a deal which includes well-known brands like Snickers, M&M’s, Galaxy, Maltesers and Twix.
The new segment joins the century-long heritages of Mars Chocolate and Wrigley, and according to Mars Inc, will help us serve our customers betters, address consumer trends and accelerate growth opportunities in a vibrant global confectionery category.”
Martin Radvan, current Global President of Wrigley and a 30-year veteran of Mars, will lead the new Mars Wrigley Confectionery segment, guiding the segments’ 30,000 association operating across 70 countries.
“Mars Wrigley Confectionery brings together two great businesses, strengthening our ability to create win-win relationships with our customers, and improving our opportunities to address dynamic retail and consumer trends together,” he says.
Since Mars acquired Wrigley in 2008, Berkshire Hathaway - whose CEO and president is American business magnate Warren Buffett - has held a minority stake in Wrigley that was subject to purchase by Mars over time. The company accelerated the purchase of Berkshire Hathaway’s entire equity interest in Wrigley.
“We are grateful for the strong and productive partnership we have with Warren Buffett and Berkshire Hathaway. It is a great relationship that has yielded value on both sides. We’re equally pleased that sole ownership of Wrigley provides us with an opportunity to rethink how we simplify our Chocolate and Wrigley businesses so that we can bring a more holistic approach to this vibrant category,” says Office of the President and CEO of Mars, Grant F. Reid.
The global hub for the new Mars Wrigley Confectionery will be in Chicago, Illinois. Mars Chocolate and Wrigley will continue to operate separately for the time being. Jean-Christophe Flatin will continue as President, Mars Global Chocolate, and Casey Keller, previously Regional President of Wrigley Americas, will become President, Global Wrigley. The combination is proposed to be phased in during 2017.
