Mars, the US food heavyweight, has expanded its presence in the food and beverage industry by acquiring Kevin’s Natural Foods, a company specializing in ready-meals and sauces.
The transaction details were not disclosed, but sources familiar with the matter estimate the deal to value Kevin’s Natural Foods at nearly $800m, according to news agency Reuters.
Kevin’s Natural Foods is known for its “chef-inspired” sous-vide meals, sides, and sauces, which are made using whole foods and simple ingredients.
Last month, Bloomberg reported that Kevin’s Natural Foods had sought advisors to explore a potential takeover.
Mars states that Kevin’s Natural Foods has experienced significant growth since its establishment in 2019, although specific data was not provided.
The company’s products are currently available in over 17,000 retail locations across the US, including grocery stores, supermarkets, and online commerce platforms. They are also sold in Canada, Mexico, and the UK.
Kevin’s Natural Foods was co-founded by Dan Costa, Kelsie Costa-Olson, and Kevin McCray. The company originated from McCray’s personal desire to adopt a healthier lifestyle. It currently has approximately 180 employees.
Mars believes that Kevin’s Natural Foods’ products will complement its existing “food and nutrition” business, which includes popular brands like Seeds of Change and Foodspring.
Shaid Shah, Global President of Mars Food & Nutrition division, states, “Kevin’s products offer exceptional quality, nutrition, and convenience without compromising on flavor, and have earned a dedicated and loyal customer base across North America. Since its founding four years ago, Kevin’s Natural Foods has demonstrated impressive growth, and we are excited to leverage our experience in nurturing and expanding founder-led brands to reach even more consumers.”
Kevin McCray, co-founder and current president of the company, adds, “At Kevin’s, our mission is to empower busy individuals to enjoy nutritious and delicious meals within minutes. Becoming a part of the Mars Food & Nutrition brand portfolio will accelerate our product innovation and support our goal of reaching more consumers in various markets.”
The acquisition also involves the exit of Kevin’s minority investors, TowerBrook Capital Partners and NewRoad Capital Partners.
While Mars is widely recognized for its confectionery brands like Snickers, the company has been striving to diversify its portfolio into healthier segments in recent years, primarily through acquisitions.
In 2020, Mars acquired the protein bar business Kind, followed by the acquisition of better-for-you snacks company Tru Fru in 2022.
