Mars Buying Chunk Of P&G’s Pet Food Business For $2.9B
Mars Inc. plans to buy the Iams, Eukanuba and Natura brands in major markets from The Procter & Gamble Co. (P&G) for $2.9 billion in cash. This, Mars says, is a significant strategic move for Mars Petcare to complement its large and growing global Petcare business.
The companies expect to complete the transaction in the second half of 2014, subject to regulatory approvals.
Mars Petcare is one of the world’s leading pet food and veterinary care providers and employs more than 35,000 associates across 50 countries. Upon completion of the transaction, the Iams, Eukanuba and Natura brands will join Mars Petcare’s billion-dollar stable mates Pedigree, Whiskas, Banfield and Royal Canin.
“We view the addition of the Iams, Eukanuba and Natura brands as exceptionally strategic,” said Mars Petcare Global President Todd Lachman. “This acquisition is a perfect fit with our Mars Petcare vision of making ‘A Better World For Pets.’ The deal reinforces our leadership in pet nutrition and veterinary science, attracts world-class talent and grows our world leading portfolio.
“Paul Iams, an animal nutritionist, founded the Iams Co. in 1946,” Lachman added. “His philosophies created very strong foundations for these remarkable brands, which will now complement our existing Mars Petcare portfolio.”
P&G’s Chairman, President and CEO A.G. Lafley said: “Exiting petcare is an important step in our strategy to focus P&G’s portfolio on the core businesses where we can create the most value for consumers and shareowners. The transaction creates value for P&G shareowners, and we are confident that the business will thrive at Mars, a leading company in pet care.”
The geographic regions included in the acquisition, which account for approximately 80 percent of P&G Pet Care’s global sales, include North America, Latin America and other selected countries. The agreement includes an option for Mars to acquire the business in several additional countries. Markets not included in the transaction are primarily European Union countries. P&G says it is developing alternate plans to sell its Pet Care business in these markets.