Mars has agreed to pay $80 cash for each share of Common Stock and Class B Common Stock of the Wrigley Company in a transaction valued at approximately $23 billion. The terms of the transaction have been unanimously approved by the Wrigley board of directors. Based on Wrigley's closing share price of $62.45 on April 25, 2008, and its three-month weighted average share price of $59.88, this price represents a premium of 28% and 34%, respectively, to the company's stockholders. This price also represents 4.3 times Wrigley's 2007 net sales and over 35 times Wrigley's 2007 earnings per share.
Mars will acquire 100% of Wrigley's outstanding shares, and all of its outstanding options will be cashed out. The Wrigley Company will operate as a separate, stand-alone subsidiary, keeping its headquarters in Chicago and continuing its civic and philanthropic involvement, both locally and in its communities around the world. Additionally, Bill Wrigley Jr. will continue serving as the company's executive chairman. As part of the transaction, Mars' non-chocolate sugar brands -- including Starburst and Skittles -- will be added to Wrigley's confectionery portfolio, joining such well-known brands as Lifesavers and Altoids.