MARS Inc. and The Procter & Gamble Co. (P&G) announced April 9 that Mars has agreed to buy the Iams, Eukanuba and Natura brands in major markets for $2.9 billion in cash.
This is a significant strategic move for Mars Petcare to complement its large and growing global pet care business, the announcement said.
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 in 50 countries. Upon completion of the transaction, the Iams, Eukanuba and Natura brands will join Mars Petcare's Pedigree, Whiskas, Banfield and Royal Canin brands.
"We view the addition of the Iams, Eukanuba and Natura brands as exceptionally strategic. This acquisition is a perfect fit with our Mars Petcare vision of making 'A Better World for Pets,'" Mars Petcare global president Todd Lachman said.
P&G chairman, president and chief executive officer A.G. Lafley explained, "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."
The geographic regions included in the acquisition, which account for approximately 80% of P&G Pet Care's global sales, are 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 in the European Union. P&G said it is developing alternate plans to sell its Pet Care business in these markets.
Based in McLean, Va., Mars has net sales of more than $33 billion from six business segments, including Petcare, Chocolate, Wrigley, Food, Drinks and Symbioscience.