General Mills Acquires Pet Treats Business from Tyson Foods


Press Release: General Mills

General Mills recently announced that it has entered into a definitive agreement to acquire the pet treats business of Tyson Foods for $ 1.2 billion in cash in a transaction that provides an estimated tax benefit of $ 225 million. dollars, which equates to an effective purchase price of $ 975 million. The company, which includes the Nudges, Top Chews and True Chews brands, is the leader in natural meat treats for pets.

“This acquisition advances our Accelerate strategy and further reshapes our portfolio for growth by adding attractive business to our fast-growing Pet platform,” said Jeff Harmening, President and CEO of General Mills. “Today’s announcement reinforces our commitment to use all levers of capital allocation – including corporate investment, dividend growth, strategic acquisitions and share buybacks – to generate leading returns for shareholders over the long term. ”

“Pet food is a high growth category, fueled by the humanization of pets, a trend that has only increased during the pandemic,” said Bethany Quam, president of General Mills Group, pet segment. “By adding these pet treat products to our portfolio, we are strengthening our position in this attractive category. This acquisition is highly complementary to our existing business, combining BLUE’s leadership position in natural pet foods with the strong portfolio of natural pet treats Nudges, Top Chews and True Chews. We are thrilled to have the opportunity to provide more ways for pet parents to feed and treat their pets like family. “

Tyson Foods’ pet treats portfolio generated more than $ 240 million in net sales in the 12 months ended April 3, 2021. As part of the acquisition, General Mills also acquires a manufacturing plant in Independence, Iowa.

The company intends to finance the acquisition with cash and short-term borrowings. The transaction is expected to be slightly earnings accretive for General Mills in the first 12 months after its completion, excluding transaction and integration fees. The company expects the transaction to close in the first quarter of fiscal 2022, subject to regulatory approval and other customary closing conditions.

Barclays acts as exclusive financial advisor to General Mills and Faegre Drinker Biddle & Reath acts as legal advisor.


About Kristopher Harris

Check Also

Wilshire Quinn funds $16,025,000 loan on portfolio of hotels in Los Angeles, California

The second property is located on Wilshire Boulevard in Korea Town/Wilshire Center and consists of …

Leave a Reply

Your email address will not be published.