Family secrets shroud both sides of Mars, Wrigley

NEW YORK (Reuters) - Mars Inc's $23 billion deal to buy Wm Wrigley Jr Co WWY.N would combine two of the nation's oldest, most successful and least-known corporate families.

Since going public in 1923, a large portion of Wrigley's shares have been controlled by the Wrigley family, but the company has often operated as if it were privately held.

Perhaps taking cues from former Chairman William Wrigley -- the grandson of William Wrigley Jr., who founded the company in 1891 -- management has rarely talked with analysts or reporters.

Over the years, the world's largest gum maker routinely avoided analyst meetings and conference calls that other publicly traded companies typically hold. Analysts were known to attend Wrigley annual meetings because it gave them a rare chance to ask questions of company brass.

The business will likely become even less transparent if regulators approve Mars' bid to create the world's largest confectionary company.

Privately held Mars -- the maker of M&M's, Milky Way candy bars and Skittles -- is even more secretive.

Founded in 1911 in Tacoma, Washington, Mars has thrived from its strong portfolio of sweets.

But the company is so tight-lipped it once told a child who wrote asking how the Milky Way got its name that the information was "classified and confidential," according the 1995 book "Crisis in Candyland."

Former Chairman Forrest Mars had a lifelong obsession with secrecy, and refused to speak to the media throughout his life and career. In fact, when the reclusive executive died at 95 in 1999, the company refused to give any details about his death.

In his obituary in the New York Times, a good deal of the article dealt with his legendary temper. According to one of his biographers, even though he had retired in the 1970s, he would continue to call Mars executives, including his sons, until near the end of his life if the lettering on one of his M&M's was unclear or if he had other complaints.

Forrest Mars passed down his tendencies to his sons Forrest Jr. and John, who generally refuse to disclose information about the firm.

At the 50th anniversary of the launch of M&M's in 1989, neither the senior or junior Forrest Mars would grant an interview.

With Warren Buffett's Berkshire Hathaway Inc (BRKa.N) purchasing a 10 percent stake in the company, Mars had little trouble securing funding for the deal, despite not being open about its financial health, analysts said.

Mars also got financial backing from investment bank Goldman Sachs Group Inc (GS.N).

"Mars is smart to bring in partners like Goldman and Berkshire," said Thomas Burnett, director of research at New York-based Wall Street Access. "It adds a lot to the credibility of the transactions."

It also adds key funding.

Asked if Buffett's funding was needed to make up a shortfall in the financing of the deal, Bill Wrigley said: "There's no question that financial markets are very challenging right now, and coming up with the capital basically to make this deal was a challenge.

Bringing Buffett in was a perfect choice for Mars, according to Kenneth Harris, principal at consulting firm Cannondale Associates.

"Who would you rather have in that?" Harris said. "He understands discretion. He understands privately held things."

(Additional reporting by Brad Dorfman; Editing by Patrick Fitzgibbons and Jeffrey Benkoe)