Mars is in the process of buying the Iams, Eukanuba, and Natura brands from P&G for $2.9 billion in cash. Mars Petcare said the strategic move complements its growing global Petcare business.
The companies expect to complete the transaction in the second half of 2014, subject to regulatory approvals.
Mars Petcare is a leading pet food and veterinary care provider and employs more than 35,000 people across 50 countries. Upon completion of the transaction, Iams, Eukanuba, and Natura 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 Company in 1946. His philosophies created very strong foundations for these remarkable brands which will now complement our existing Mars Petcare portfolio.”
“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,” added P&G’s chairman, president and CEO A.G. Lafley. “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% 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.