Mars to Expand Pet Care Business With $2.9 Billion Acquisition
Mars Incorporated has agreed to acquire the IAMS®, EUKANUBA® and NATURA® pet care brands in major markets from Procter & Gamble for $2.9 billion in cash. The deal is a significant strategic move for Mars Petcare to complement its large and growing global petcare business.
The geographic regions included in the acquisition, which account for approximately 80% of P&G’ global pet care 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 is developing alternate plans to sell its pet care business in these markets.
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 people across 50 countries. Upon completion of the transaction, IAMS®, EUKANUBA®, and NATURA® brands will join Mars Petcare’s billion dollar stable mates PEDIGREE®, WHISKAS®, BANFIELD®, and ROYAL CANIN®.
Mars Petcare global president, Todd Lachman, says: ” 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.
P&G’s chairman, president and chief executive, AG Lafley, says: “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. 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.”
Based in McLean, Virginia in the US, Mars Incorporated has net sales of more than $33 billion, six business segments including Petcare, Chocolate, Wrigley, Food, Drinks, Symbioscience, and more than 75,000 employees worldwide.
