Mars to acquire P&G pet business

Mars will acquire significant portions of Procter & Gamble’s pet food business when it purchases Iams, Eukanuba and Natura brands for $2.9 billion in cash.

The transaction is expected to be complete in the second half of 2014 and is subject to regulatory approval.

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“We view the addition of the Iams, Eukanuba and Natura brands as exceptionally strategic,” said Todd Lachman, Mars Petcare Global president, in a statement. “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 P&G brands will join Mars Petcare’s Pedigree, Whiskas, Banfield and Royal Canin brands.

P&G chairman, president and CEO A.G. Lafley said, “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.”