Goldman Sachs to earn $93mn from sale of Pringles owner

Jumbo fee comes as Wall Street hopes long-awaited deal boom is back




Goldman Sachs is set to earn $93.2mn from its work advising Pringles and Pop-Tarts maker Kellanova on its $36bn sale to Mars, one of Wall Street’s biggest M&A paydays in recent years.

The fee for Goldman, disclosed in a regulatory filing on Wednesday, underscores burgeoning optimism on Wall Street that deal activity is picking up after a lacklustre two years. Lazard, which advised Kellanova’s board of directors on the deal, is set to earn $10mn. The vast majority of both fees is dependent on the deal successfully closing.

The fee is enormous, even by Wall Street standards, especially given the size of the transaction.

Mars’ $36bn deal for Kellanova is the largest US merger announced this year. But bigger deals agreed last year nevertheless yielded lower fees for the banks involved.
https://www.ft.com/content/4a885566-0eb1-4f54-9986-3929ffd9fe71.