Family-owned candy giant Mars, whose brands include M&M's, Snickers and Milky Way, said on Wednesday it would acquire Cheez-It and Pringles maker Kellanova in a nearly $36 billion deal, making it the biggest buyout in the packaged food industry.

Mars will pay $83.50 per share in an all-cash deal for Kellanova, representing about a 33% premium to its closing price on Aug. 2 before Reuters first reported that Mars was exploring a deal for the Pringles maker.

Shares of Kellanova rose about 8% to $80.45 before the bell. On an equity basis, it is valued at $28.58 billion, according to a Reuters calculation.

The deal comes as sales growth at U.S. packaged food companies, including Kraft Heinz, Mondelez and Hershey, slows due to budget-strapped customers opting for cheaper, private labels instead of pricier branded items.

The deal dwarfs Mars' $23 billion takeover of Wrigley in 2008 and would bring under one roof popular consumer brands, including Mars' Twix, Bounty and Milky Way chocolates, as well as Kellanova's snacks portfolio of Pop-Tarts, Rice Krispies Treats and Eggo frozen waffles.

The acquisition is also not expected to face too many antitrust roadblocks due to the limited overlap between the offerings of the two companies; legal experts had told Reuters.

Kellanova will become part of Mars Snacking, led by Global President Andrew Clarke and based in Chicago after the completion of the deal in the first half of 2025, the companies said.

Kellanova, which split from WK Kellogg last October, is rooted in a salty snacks business and sells cereal outside of North America. WK Kellogg was left with the North American cereal business of Kellogg, the original parent company.

Kellanova logged net sales of more than $13 billion in 2023.

The Wall Street Journal reported the terms of the deal earlier on Tuesday.