CHICAGO - Officials with the Wrigley Company sought Monday to assure their 14,000 employees - about a thousand of them in Hall County - that the sale of the company to candy-marker Mars will have little impact on them.
Meanwhile, a top chamber of commerce official in Gainesville says she's optimistic about the future of the local plant.
Snickers and M&Ms candy maker Mars Inc. is buying Wm. Wrigley Jr. Co., which makes Juicy Fruit and Doublemint gum and Life Savers (and has a plant in Flowery Branch), for about $23 billion in cash.
The agreement, announced Monday, has the potential to transform the globe's confectionary industry and could spawn a series of other combinations.
"First and foremost, this is a great transaction at a great price that provides tremendous value to Wrigley stockholders," Bill Wrigley Jr., chairman of Wrigley's board, said in a statement. "We see this as an historic opportunity to preserve what is special about the Wrigley company in terms of values and culture, while continuing to grow and develop our associates, invest in our brands and drive long-term generational growth."
Wrigley wrote, in an e-mail to the company's employees, that "if approved, the Wrigley Company will become a separate, stand-alone subsidiary of Mars, with me serving as Executive Chairman of the Wrigley Company, our current leadership team in place, and an understanding that we will manage our company as a stand-alone entity. We will continue to do what we do best, while having access to taking full advantage of the worldwide talent, innovation, and experiences of Mars, Incorporated."
Wrigley continued "I want you to know that I strongly support this decision, and I will remain fully involved in the organization and the business going forward as Executive Chairman of the Wrigley Company. I also want to emphasize that Mars recognizes that our success has been fueled by the energy, imagination and hard work of our strong leadership team and remarkably talented associates around the world. Their intent is for us to run as a separate entity with a high degree of autonomy -- which they have done successfully with other mergers. Bill Perez and I, along with Paul S. Michaels, Mars Global president, fully expect our Executive Leadership Team and the global leadership of our company to remain in place as active leaders of the business. We will be reaching out to you in the weeks ahead with additional updates and town hall meetings about what this means to the Company and its future, as well as what it means to all of you as individuals."
Family-owned Mars is the world's largest chocolate seller.
If the deal is completed, the combined companies would unseat Britain's Cadbury Schweppes as the world's largest confection maker.
"I look at it as two companies that see the opportunity to create a true global confectionary powerhouse," Morningstar analyst Mitchell Corwin said. "Combined, they catapult Cadbury by a significant margin. They become No. 1 in chocolate and No. 1 in chewing gum with a strong international presence and growth in emerging markets."
Kit Dunlap, President and CEO of the Greater Hall Chamber of Commerce, said late Monday morning she had no inkling that such a deal was in the works but added that in these days of corporate mergers it did not surprise her.
"You know these two companies, Mars and Wrigley's, have been very successful and their stocks have been very successful."
Dunlap added she's optimistic about the future of the local Wrigley plant, noting the investments Wrigley has made in it over the years, including a $48 million investment about two years ago which was to add 200 to the 800 people already on the payroll there.
"So, I think they have a large investment in, not only that building and that equipment, but in their employees," she said.
But, there was no mention in Monday's announcement about the future of any Wrigley or Mars plants.
The Wrigley plant in Flowery Branch has been a Hall County fixture for more than 35 years.
Under the agreement, shareholders at Chicago-based Wrigley would receive $80 in cash for each share Wrigley share.
The $80-per share offer is a 28 percent premium to Wrigley's Friday closing price of $62.45, and the news sent Wrigley's shares into overdrive in morning trading Monday.
The stock price soared $14.25, or 22.8 percent, to $76.70 in morning trading Monday after briefly rising to a 52-week high of $77.75.
After the buyout is completed in six to 12 months, Wrigley would become a subsidiary of McLean, Va.-based Mars. Its headquarters will stay in Chicago, where the business has operated since it was founded by the Wrigley family in 1891.
"When this transaction is completed, we will be proud to welcome Wrigley's associates to our company," Mars President Paul S. Michaels said in a statement. "The strong cultural heritage of two legendary American companies with a shared commitment to innovation, quality and best-in-class global brands provides a great basis for this combination."
Warren Buffett's Berkshire Hathaway Inc. will purchase $2.1 billion minority equity interest in the Wrigley subsidiary once the deal is completed. The Omaha, Neb.-based company also offered $4.4 billion of subordinated debt to fund the deal.
"A good time to buy a really great business is when you can do it," Warren Buffett said on CNBC Monday, adding that he understands Mars and Wrigley better than the balance sheets of most major banks.
Among Wrigley's others brands are Orbit, Extra and Big Red gum and Altoids mints.
The company's name has been synonymous with Chicago for decades. The gum maker's ornate towering headquarters along the Chicago River is a favorite among tourists for snapping pictures. And the Chicago Cubs historic ballpark - Wrigley Field - got its name while the team was owned by the Wrigley family, which sold the franchise decades ago.
Meanwhile Monday, Wrigley said its first-quarter profit rose 18 percent, thanks to strong sales in Eastern Europe and Asia and a weakened U.S. dollar.
The company earned $168.6 million, or 61 cents per share, during the January-through-March quarter. That's up from $142.7 million, or 52 cents per share last year. Revenue climbed 16 percent to $1.45 billion from $1.25 billion last year. Analysts polled by Thomson Financial expected a profit of 55 cents per share on revenue of $1.39 billion.
(AccessNorthGa.com's Ken Stanford contributed to this story).
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On the Net:
Mars Inc. http://www.mars.com
Wm Wrigley Jr. Co. http://www.wrigley.com
Greater Hall Chamber of Commerce. http://www.ghcc.com
Wednesday
June 18th, 2025
2:43AM
