by MT Bureau - April 29, 2008
Chicago -- Chicago chewing gum maker Wm. Wrigley Jr. Co. announced Monday it had agreed to a merger with Mars Inc. for $23 billion.
The merger combines Mars -- maker of M&M's, Snickers and Skittles -- with Wrigley -- maker of LifeSavers, Altoids and various brands of chewing gum.The terms, unanimously approved by Wrigley's board of directors, includes $80 cash for each share of common stock. Wrigley's average share was valued at $62.45 Friday, a company news release said.
"This is a great transaction at a great price," Executive Chairman Bill Wrigley Jr. said in the statement.
The sale would turn publicly owned Wrigley over to "one of the world's premier family-owned companies," the release said.
"Mars and Wrigley have much more in common than multi-generational family leadership and significant global footprints," said Paul S. Michaels, president of Mars Global. "We share common values and ways of doing business."
Funding for the deal includes minority equity interest of $2.1 billion from Berkshire Hathaway, controlled by the world's richest man, Warren Buffett.
"Those of you who know me, know that I have been a big fan of Wrigley's business model for many years and I love their products," Buffett said.
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