Mars set to buy portion of P&G's pet food business

MCLEAN, Va. and CINCINNATI — Mars and Procter & Gamble announced that Mars has agreed to buy the Iams, Eukanuba and Natura brands for $2.9 billion in cash. The purchase is part of a strategic move for Mars to complement its burgeoning global petcare business. The companies expect to complete the transaction in the second half of 2014.



Mars Petcare is a leading pet food and veterinary care provider and employs more than 35,000 people across 50 countries. Once the transaction is complete, the three brands will join Mars Petcare brands Pedigree, Whiskas, Banfield and Royal Canin.



"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," said Todd Lachman, Mars Petcare global president. "The deal reinforces our leadership in pet nutrition and veterinary science, attracts world class talent and grows our world-leading portfolio."



P&G's departure from the pet care market is an equally important and strategic move, the company noted.



"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 chairman, president and CEO. "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."