Wrigley sold to Mars for $23 billion

By Lisa Kerner

Charlotte, N.C., Oct. 6 - Wm. Wrigley Jr. Co. will operate as a subsidiary of Mars, Inc. now that the merger of the two companies is complete.

In April, privately held Mars announced it would acquire Wrigley for $23 billion.

Under the companies' merger agreement, Wrigley stockholders will receive $80 in cash, without interest and less any applicable withholding tax, for each share of common stock and class B common stock.

Wrigley said its shareholders overwhelmingly approved the transaction on Sept. 25.

According to a Wrigley news release, the company's stock was slated to cease trading on the New York Stock Exchange and the Chicago Stock Exchange at the close of the market Monday and will be delisted.

Wrigley executive chairman Bill Wrigley Jr. called the merger "an exciting new chapter for the Wrigley company."

"The combination of our two strong international businesses, with best-in-class global brands, also creates one of the world's leading confectionery companies," Mars president and chief executive officer Paul S. Michaels said in a company news release.

Wrigley will retain its headquarters location in Chicago. Mars said it will transfer its global non-chocolate confectionery sugar brands to the Wrigley subsidiary. The brand portfolio includes Skittles and Starburst as well as production facilities in Australia and Mexico.

Financing for the transaction was provided by Berkshire Hathaway, Goldman Sachs and JPMorgan. Berkshire Hathaway will hold a minority equity investment in the Wrigley subsidiary.

Wrigley is a Chicago manufacturer of gum and confections.

McLean, Va.-based Mars produces confections and other products. It operates three plants in Illinois, including a chocolate confectionery plant in Oak Park.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.