Mars, the purveyor of Snickers and M&M’s, expanded its pet food business on Wednesday with a deal to acquire Procter & Gamble’s pet food brands Iams, Eukanuba and Natura for $2.9 billion in cash.
“This acquisition is a perfect fit with our Mars Petcare vision of making ‘A Better World For Pets’,” said Mars Petcare Global President Todd Lachman in a statement today. “The deal reinforces our leadership in pet nutrition and veterinary science, attracts world class talent and grows our world leading portfolio.”
For Procter & Gamble’s part, President and CEO Alan Lafley is quoted as saying that 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.”
Procter & Gamble’s gradual exit from the pet food business represents a shift in strategy. As recently as 2010, the company continued to be active in adding pet-related businesses, buying organic pet food maker Natura Pet Products, which had annual revenue at the time of nearly $360 million.
Natura’s stable of organic brands included Innova, EVO, California Natural, HealthWise, Mother Nature and Karma.
For McLean, Va.-based Mars, the deal adds to its existing roster of petcare brands that includes Pedigree, Royal Canin, Whiskas, Banfield, Nutro, Sheba, Dreamies, Cesar, and Pet Hospital.
Enter your email address below and never miss out on the latest, most important dog news: