On Wednesday, Mars Inc., a major food corporation, announced it has reached an agreement to purchase Kellanova, a well-established manufacturer of snacks, cereals, and noodles, in a staggering $35.9 billion transaction.

This family-run business, which is behind brands like Snickers, Skittles, and M&M’s, will pay $83.50 per share in an all-cash offer for Kellanova (K.N). This represents an approximate 33% premium over Kellanova’s share price from August 2, just before Reuters reported on Mars’s interest in the Pringles manufacturer. Other significant brands under Kellanova include Eggo, Cheez-It, Club Crackers, and Pop-Tarts.

“By integrating Kellanova’s global brand portfolio, Mars sees a significant opportunity to enhance our sustainable snacking business for the future,” stated Poul Weihrauch, CEO of Mars. “We will respect the legacy and creativity behind Kellanova’s impressive food brands while leveraging our complementary strengths to provide more choices and innovations for consumers and partners. We hold Kellanova’s rich heritage in high regard and can’t wait to welcome their talented team.”

According to Reuters, Kellanova’s stock surged by 8% to $80.45 before the market opened.

The acquisition aims to cater to the demand for more affordable food options

The agreement for Kellanova comes as sales growth for U.S. packaged food companies, including Kraft Heinz, Mondelez (MDLZ.O), and Hershey (HSY.N), has slowed due to consumers looking for cheaper, private-label choices instead of expensive branded products. This trend has prompted significant activity in the packaged food sector as companies merge to better withstand the pressures of rising prices and the impact of weight-loss medications on consumer demand.

This deal surpasses Mars’ previous $23 billion acquisition of Wrigley in 2008 and is regarded as the largest transaction within the packaged food industry to date. Legal experts have indicated that the acquisition is unlikely to face major antitrust challenges due to the minimal overlap in their product offerings.

Kellanova, which separated from WK Kellogg Co (KLG.N) last October, is primarily focused on the salty snacks market both in the U.S. and globally, along with marketing cereals beyond North America. WK Kellogg retained the North American cereal division of Kellogg, the original parent company.

The Wall Street Journal disclosed the agreement’s specifics earlier on Tuesday.

Brands under Kellanova

Here’s a comprehensive list of all brands owned by Kellanova:

• Austin
• Carr’s
• Cheez-It
• Kellogg’s Club Crackers
• Kellogg’s Eggo
• Kellogg’s Graham Crackers
• Frozen Breakfast
• Morning Star Farms
• Kellogg’s Nutri-Grain
• Pop Tarts
• Pringles
• Pure Organic
• Kellogg’s Rice Krispies Treats
• RXBar
• Special K
• Toasteds
• Town House
• Zesta