MCLEAN, Va.—Candy maker Mars, Inc. announced plans to buy a portfolio of pet food brands from Procter & Gamble Co. (P&G) for US$2.9-billion cash.
Mars, which already owns the Pedigree, Whiskas, Banfield and Royal Canin brands, said the deal will see it add the IAMS, Eukanuba and Natura lines to its petcare division.
“Exiting pet care 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,” P&G president and chief executive A.G. Lafley said in a statement released by Mars.
“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 deal covers brand acquisitions in North America, Latin America and “other selected countries,” which account for roughly 80 per cent of the P&G portfolio’s global sales.
Markets not included in the transaction are primarily in the European Union (EU).
P&G said it is developing alternate plans to sell its pet care business in these markets.
According to the Mars, the deal includes an option for the company to acquire the business in several additional countries.
The companies expect to complete the transaction in the second half of 2014, subject to regulatory approvals.