Exploring the Process of Acquiring Mars Inc. Shares: Are They Available as Public Offerings?

Exploring the Process of Acquiring Mars Inc. Shares: Are They Available as Public Offerings?

Mars has been a family-possessed business for over a century. Initially, it began as a candy seller and later transformed into one of the country's largest privately held corporations.

Mars operates various prominent brands under four business units:

  • Food: Mars owns 13 dominant food brands, lead by Ben's Original.
  • Pet care: The company manages approximately 50 pet care brands, such as Whiskas, Royal Canin, and Pedigree. Mars also owns Banfield Pet Hospitals and Veterinary Centers of America (VCA).
  • Wrigley: Mars, with the help of Warren Buffett, bought the renowned confectionery Wrigley Company for $23 billion in 2008 (and consequently, Buffett's stake). It combined Wrigley with its century-old chocolate business. Today, Mars controls numerous leading confectionery brands, including M&M's, Snickers, Twix, Skittles, and Mars.
  • Edge: Mars' newest segment is a pioneering unit aiming to enhance human health.

Mars announced its plans to acquire leading packaged foods company Kellanova for $35.9 billion in 2024. Kellanova owns popular brands like Pringles, Cheez-It, Rice Crispy Treats, and Eggo. The deal, set to close in 2025, will allow Mars to expand its snacking division significantly over the next decade.

Mars has consistently maintained privacy and refused to go public despite investor speculations.

IPO

An IPO (Initial Public Offering) refers to the first sale of stock by a private company to the public, making it a publicly traded entity.

Publicly traded?

Is Mars publicly traded?

No, Mars isn't a publicly traded corporation. It has been privately-owned by the Mars family since Franklin Mars established it in 1911. Mars ranks among the country's largest private companies, with Forbes reporting a $50 billion revenue in 2023, making it the fourth-highest revenue-generating private company.

When will it IPO?

When will Mars IPO?

Mars did not have an IPO on its calendar as of late 2024, and there's no indication that it will go public anytime soon. The company has preferred to remain private for over a century and intends to preserve its family-owned structure, which allows it to follow its long-term growth strategy without catering to external shareholders.

How to buy

How to buy Mars stock

Since Mars is a family-owned, private company, you can't purchase its shares via a brokerage account or in a secondhand market for pre-IPO companies.

However, you can invest in stocks of comparable companies operating within the consumer discretionary sector. Here are three companies similar to Mars:

Hershey

Hershey shares many similarities with Mars, as it started out as a family chocolate and sweet company over a century ago. It has since developed into a significant global snack enterprise by launching new products and acquiring other brands. It was the leading U.S. confectionery company in 2024, ranking second in the snacking sector.

Hershey generates more than $11 billion in annual revenue and is highly profitable, distributing excess cash to investors through a steadily growing dividend.

Nestle

Nestle, a Swiss food and beverage company, boasts over 2,000 brands across numerous categories, including chocolate and confectionery, drinks, and pet care. The company invests heavily in research and development to create innovative new products and routinely acquires brands to expand its reach.

For instance, in 2023, it bought a majority stake in a premium chocolate company in Brazil, which contributed to its revenue and earnings growth, enabling it to increase shareholder value.

Freshpet

Freshpet creates fresh, real food for cats and dogs utilizing local produce, blending fresh meats, fruits, and vegetables in small batches to preserve freshness. The company earned more than $700 million in sales through the first nine months of 2024, with rapid sales growth, delivering its 25th straight quarter of more than 25% year-on-year net sales growth in the third quarter of 2024.

Investors looking to buy Mars alternatives can purchase shares in any brokerage account by following these steps:

Step 1: Open a brokerage account

You'll need a brokerage account to start investing. Research various brokers to find the best one that suits your needs.

Step 2: Determine your budget

Prior to initiating your initial trade, you'll need to establish a budget for the investment funds you're willing to allocate. Subsequently, you'll need to decide how to distribute this budget. Our platform encourages creating a varied portfolio of at least 25 stocks, which you aim to maintain for a minimum of 5 years.

You don't need to purchase all these stocks immediately. For instance, if you have $1000 available for investment, you might opt to allocate this amount across a minimum of 10 stocks to begin with. From there, you can expand your portfolio as your investment resources grow.

Step 3: Conduct thorough research

It's essential to diligently research a company prior to purchasing its shares. This involves learning about their revenue sources, competitors, financial status, and other significant factors to ensure you have a comprehensive understanding of the company's potential for long-term growth.

Step 4: Place an order

After setting up and funding your brokerage account, establishing your investment budget, and conducting your research, you're ready to purchase shares. The process is straightforward. Go to your brokerage account's order page and input the necessary details, such as:

  • The number of shares you wish to purchase or the amount you'd like to invest to procure fractional shares.
  • The stock ticker (HSY for Hershey, NSRGY for Nestle, and FRPT for Freshpet).
  • Whether you want to place a limit order or a market order. Our platform advises using a market order since it guarantees you'll buy shares immediately at the current market price.

Upon completing the order page, click to submit your trade and become a shareholder in one of these Mars alternatives. If Mars ever does decide to go public, the process to buy its stock will be similar, involving filling out an order page at your brokerage account with Mars' selected stock ticker and then submitting your trade.

Profitability

Is Mars profitable?

Since Mars is a privately-owned company, it's not obligated to disclose its financial results publicly. However, we do know that the company generates substantial revenue. Mars reported over $50 billion in sales in 2023, surpassing the revenue generated by beverage giant Coca-Cola.

We also know that the company is financially sound. Mars' website notes the importance of profit, stating: "The freedom of Mars depends on the creation of profit. Because Mars is profitable and generates cash, we need not borrow money to an extent that we might lose control of our affairs."

Mars' robust profitability is a primary reason it has remained privately held throughout the years. It doesn't require capital from outside investors to fund its growth. Mars highlights this on its website: "To this end, a substantial portion of operating profits is reinvested each year. This profit then provides the cash with which we can build and upgrade plants, enter new markets, invest in R&D, innovate and implement new ways of doing things, acquire new businesses and create strategic alliances, all to maintain our competitive position."

Capital

Capital refers to any asset that can be utilized to generate future value, including cash and both tangible and intangible assets. As long as Mars remains financially solid, it can remain privately held because it can fund its growth without requiring additional capital from outside shareholders. This is evident in its acquisition of Kellanova in 2024.

Mars is spending $35.9 billion in cash (and the assumption of debt) to purchase the packaged foods giant in order to expand its snacking operations. It's financing this substantial deal with cash in reserve and new debt from its banking partners.

Should I invest?

Should I invest in Mars?

Unfortunately, you cannot invest in Mars since it remains a privately-owned company with no plans to go public. However, you can invest in companies experiencing the same factors contributing to Mars' financial strength.

Hershey is a compelling alternative to consider. Hershey is the leading confectionery company in the U.S. and ranks second in the U.S. snacks market. It's also financially sustainable, with a steady increase in free cash flow. This cash enables Hershey to grow its business and return value to shareholders through share repurchases and growing dividends.

The company expects to deliver 6% to 8% annual earnings-per-share growth over the long term, enabling Hershey to continue generating value for its shareholders.

ETF options

ETFs with exposure to Mars

Many investors prefer to invest passively rather than actively managing their portfolio. Exchange-traded funds (ETFs) make this simple.

Exchange-Traded Fund (ETF)

An exchange-traded fund, or ETF, allows investors to buy a diversified portfolio of stocks or bonds with a single transaction. Since Mars is not publicly traded, you cannot gain passive exposure to its stock through an ETF. However, you can invest in ETFs concentrating on food stocks to capitalize on the same trends driving Mars' financial growth. Some top food ETFs to consider are:

  • FirstState Street Trust's Nasdaq Food & Beverage ETF (*NASDAQ:FTXG):* This ETF aims to offer investors exposure to the American food and beverage sector. It held shares of 29 companies in late 2024, with Hershey being the 11th-largest holding, accounting for 4% of the fund's assets. The fund charges investors an expense ratio** of 0.6%.
  • Invesco Dining & Food ETF (*NYSEMKT:PBJ*): This ETF also offers investors access to the American food and beverage sector through a single investment. It held shares of 37 companies in late 2024, with General Mills (0.54%) as the largest holding, at 5.1% of its assets. The fund had a slightly higher total expense ratio of 0.62%.

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Mars is one of the largest privately-owned companies in the nation. The family-owned confectionery and pet care company is likely to remain private due to its lack of need for external capital and the family's reluctance to cede control to outsiders.

Although public investors can't own a stake in the company, there are several ways to invest in the same trends that have propelled Mars to become a top company.

FAQ

Inquiries about Investing in Mars

Can you buy Mars stock?

You cannot buy Mars stock. It's a privately-owned company controlled by the Mars family.

Is Mars a publicly-traded company?

Mars is not a publicly-traded company. It's a privately-owned company controlled by the Mars family.

Who owns Mars stock?

The Mars family owns all of Mars' stock and controls the company.

Does anyone own Mars company?

The Mars family owns Mars.

Matt DiLallo has positions in Coca-Cola and Hershey. Our Website has positions in and recommends Hershey. Our Website recommends Nestlé. Our Website has a disclosure policy.

Mars continues to generate substantial revenue and remain financially sound, as evidenced by its $50 billion revenue in 2023, surpassing Coca-Cola's revenue. Despite being privately owned, investors looking for alternatives can invest in companies with similar factors contributing to Mars' financial strength, such as Hershey. Additionally, one could explore ETFs focusing on the food sector for passive exposure to industries driven by Mars' growth.

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