Mars Purchases P&G Pet Care Brands
Mars, Inc., has agreed to purchase the Iams, Eukanuba and Natura brands from Procter & Gamble (P&G) for $2.9 billion. The companies expect to complete the transaction in the second half of 2014, subject to regulatory approvals.
The purchase is a strategic move for Mars Petcare to complement its large and growing global Petcare business, which includes Pedigree, Whiskas, Banfield and Royal Canin.
"We view the addition of the Iams, Eukanuba and Natura brands as exceptionally strategic," said Todd Lachman, global president of Mars Petcare. "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."
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 said it is developing alternate plans to sell its Pet Care business in these markets.
"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," said A.G. Lafley, P&G's president and chief executive officer. "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.”