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Mars is mentioned now and again as a possible elephant for Berkshire.

Some news:
Mars prices $26 billion 8-part bond, highlights big M&A financing week
https://www.reuters.com/markets/deals/mars-announc...

Family-owned candy giant Mars on Wednesday priced a $26 billion eight-part investment-grade bond offering to help finance its takeover of Pringles maker Kellanova (K.N), in what is expected to be one of the largest acquisition financing deals this year.

Bank of America (BAC.N), BNP Paribas (BNPP.PA), Citigroup (C.N), JP Morgan (JPM.N), Morgan Stanley (MS.N), and Rabobank were the bookrunners for the offering.

IIRC, Berkshire was part of the financing for the Wrigley purchase. No mention of Berkshire in this one, yet.

More:
Candy Maker Mars Paid $1.5 Billion to Family Shareholders in 2024
https://www.msn.com/en-ph/money/other/candy-maker-...

Candy and pet-care giant Mars Inc. paid its family shareholders $1.5 billion in dividends last year, more than triple the amount it distributed in 2023 and 2022.

The payouts were disclosed as dividends to common stockholders in a prospectus for investors, a copy of which was obtained by Bloomberg. The McLean, Virginia-based company is selling bonds for its nearly $36 billion purchase of rival snack maker Kellanova. The filing showed the fifth-generation family business had $54.6 billion in net sales in 2024, up 4.6% from a year earlier.

Don't know how many family members there are these days. The Mars brothers were famous for their personal frugal ways, much like Buffett - they invested in the businesses. Could be that their descendants are less frugal, and $1.5b doesn't go very far? Uncle Warren could help get them a much bigger, though one-time payout, if they wanted.

Do we Berkshire shareholders want that? More snack foods? 4.6% growth in sales?

I thought the GLP-1 drugs were killing the snack food business?

I think the Wrigley deal involved Berkshire only because the bond markets were locked up due to the GFC.

As far as a future acquisition, I don't think any of the large cap privately owned companies like Cargill, Koch Industries, Mars, Publix, HEB, etc need Berkshire. The owner families are so well off that they have the apparatus like family offices, board consultants, etc to manage and maintain control.

Rather it is the small to medium family owned businesses, maybe below $30B in value that may want to have the safety net of Berkshire to ensure the long term future of the company. I think founders go to WEB, but not so much the 2nd or 3rd generation.

I thought the GLP-1 drugs were killing the snack food business?

That's what we hear. Mars seem to be paying up for Cheez-its and Pringles. I guess they think differently.

Also: Mars Petcare https://www.mars.com/our-brands/petcare

I posted this excerpt from the FT a couple of years ago: https://www.shrewdm.com/MB?pid=371019908

...which contained this from the CEO: "Two short quotes, the first in the one-that-got-away department: "Mars revealed last year that revenues had grown from $28bn to $45bn in Grant Reid's eight years as CEO...Mars now has 12 brands with sales above $1bn"

And the second, in the Hmmm-I-didn't-know-that file: "Mars Petcare...the world's largest provider of veterinary services...Mars now spends more than $500mn a year on scientific research, he said, and expects 'tremendous growth' from a new pet diagnostics division""

It would be nice to hear an update, if he ever gives another interview

-- sutton
whose vet bills reached a new record last year, exceeding property taxes. And Costco.

-- sutton
whose vet bills reached a new record last year, exceeding property taxes. And Costco.

One investing theme I've liked for years is what I call "expensive pets". Sixty years ago, people were unwilling to spend much on pets and other than vaccinations and some wound care, not much was done. This has totally flipped and some friends spent $14k on chemo for a dog. So companies that do animal health seem like good long term growth prospects.

So companies that do animal health seem like good long term growth prospects.

Maybe. But it depends on how people will act in a recession (like any other discretionary business). If they massively pull back on this kind of expense AND change their future behavior after that, then it could be a whole generation until growth returns.

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