Conglomerates, whose product portfolios span many product categories and sometimes sectors, are an important part of today's economy. The emergence of these firms is closely linked to mergers where the merging firms operated in different product categories before the merger. I analyze 57 of these cross-category mergers in the US consumer packaged goods industry. My analysis focuses on the target firms that are usually taken over by large acquirers. I show that cross-category mergers can affect their sales, but this effect does not occur on average and is linked to heterogeneity in merger cases. Acquirers and target firms rely on the same retailers to sell their products to consumers, and if the acquirer generated larger sales at a retailer before the merger, the target firm benefits from increased sales at that retailer. Conversely, if the target firm had larger pre-merger sales, it experiences a negative sales effect. I show that the sales effect is due to a quantity effect and not a price effect. I relate the retailer-specific effect to a region-specific effect and use a theoretical model to discuss how merging firms can better utilize their logistics infrastructure after the merger.