Mars goes on the snack attack for Pringles maker Kellanova (NYSE: K)

A major snackocalypse is unfolding. Mars Inc.—the maker of M&M’s, Skittles, Snickers and Twix—said Wednesday that it had agreed to buy Kellanova (NYSE: K), the company commonly known as Kellogg’s that produces some of the most iconic snack brands including Pringles, Pop-Tarts, Cheez-It and Rice Krispie Treats. 

According to the terms of the agreement, Mars will pay $83.50 per Kellanova share in cash. That’s a premium of about 44% to the unaffected 30-trading day volume weighted average price. The deal comes as companies in the sector are facing pressure from price sensitive consumers, many of whom have been pulling back on spending because of ongoing inflation. Mars, a private firm with deep pockets, may have found it to be an auspicious time to acquire undervalued public companies.

“Expected price deceleration will likely prompt acquirers in the space to increasingly focus on target companies with product volume-driven earnings growth,” Capstone Partners said in a recent report, and that’s exactly what Kellanova’s latest earnings report showed. The company was able to raise its full-year guidance amid improving profit margins and volumes across North America, Latin America and Europe, and CEO Steve Cahillane said price cuts would not be necessary because of its strong brand performance.

Kellanova, which had a market capitalization of around $22 billion before Reuters first broke the news about the interest from Mars earlier this month, had been trading at a discount to peers including The Hershey Co (NYSE: HSY) and Mondelez International (NASDAQ: MDLZ). Its shares, however, quickly surged 19% after the initial report, and the premium Mars ended up agreeing to pay means smaller competitors such as J M Smucker Co (NYSE: SJM) and Campbell Soup Company (NYSE: CPB) may start to look like good buys as they both have much lower price to earnings ratios.

The deal between Mars and Kellanova still needs regulatory approval, so anyone waiting for a Snickers Pop-Tart or Cheez-It M&M’s may need to wait just a bit longer. But as inflation and weight loss drugs continue to affect demand and upend the larger snack food industry, more consolidation seems like a certainty. The resulting combinations could be the real treat.