MCLEAN, Va. & CINCINNATI–(BUSINESS WIRE)–MCLEAN, Va. & CINCINNATI—-Mars, Incorporated and The Procter & Gamble Company (NYSE:PG) today announce that Mars has agreed to buy the IAMS®, EUKANUBA®, and NATURA® brands in major markets for US$2.9 Billion in cash. This is a significant strategic move for Mars Petcare to complement its large and growing global Petcare business.
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 Associates across 50 countries. Upon completion of the transaction, IAMS®, EUKANUBA®, and NATURA® brands will join Mars Petcare’s billion dollar stable mates PEDIGREE®, WHISKAS®, BANFIELD®, and ROYAL CANIN®.
Mars Petcare Global President, Todd Lachman, said: “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™. 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.”
P&G’s Chairman, President and Chief Executive Officer, 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.”
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.
P&G Financial Impacts:
P&G said that it will begin reporting results of the global Pet Care business as discontinued operations as of the April-June 2014 quarter. As a result, P&G expects to restate earnings of approximately $0.03 and $0.04 per share from core earnings to discontinued operations for fiscal years 2013 and 2014, respectively, leaving its fiscal year 2014 core earnings per share growth rate guidance unchanged. The company added that the one-time earnings impact from the divestiture and ongoing earnings per share dilution are not expected to have a material impact on fiscal year 2015 results. P&G said that net cash proceeds from the transaction would be used for general corporate purposes.
About Mars, Incorporated
In 1911, Frank C. Mars made the first Mars candies in his Tacoma, Washington kitchen and established Mars’ first roots as a confectionery company. In the 1920s, Forrest E. Mars, Sr. joined his father in business and together they launched the MILKY WAY® bar. In 1932, Forrest, Sr. moved to the United Kingdom with a dream of building a business based on the objective of creating a “mutuality of benefits for all stakeholders” – this objective serves as the foundation of Mars, Incorporated today. Based in McLean, Virginia, Mars has net sales of more than $33 billion, six business segments including Petcare, Chocolate, Wrigley, Food, Drinks, Symbioscience, and more than 75,000 Associates worldwide that are putting its Principles into action to make a difference for people and the planet through its performance.
Mars brands include: Petcare – PEDIGREE®, ROYAL CANIN®, WHISKAS®, BANFIELD® Pet Hospital, NUTRO®, SHEBA®, DREAMIES® and CESAR®; Chocolate – M&M’S®, SNICKERS®, DOVE®, GALAXY®, MARS®, MILKY WAY® and TWIX®; Wrigley – DOUBLEMINT®, EXTRA®, ORBIT® and 5™ chewing gums, SKITTLES® and STARBURST® candies, and ALTOIDS® AND LIFESAVERS® mints. Food –UNCLE BEN’S®, DOLMIO®, EBLY®, MASTERFOODS®, SEEDS OF CHANGE® and ROYCO®; Drinks – ALTERRA ® Coffee Roasterscoffee, THE BRIGHT TEA CO.® tea,DOVE®/GALAXY® Hot Chocolate, and FLAVIA® brewer; Symbioscience – COCOAVIA® and WISDOM PANEL®.
About Procter & Gamble
P&G serves approximately 4.8 billion people around the world with its brands. The Company has one of the strongest portfolios of trusted, quality, leadership brands, including Always®, Ambi Pur®, Ariel®, Bounty®, Charmin®, Crest®, Dawn®, Downy®, Duracell®, Fairy®, Febreze®, Gain®, Gillette®, Head & Shoulders®, Lenor®, Olay®, Oral-B®, Pampers®, Pantene®, SK-II®, Tide®, Vicks®, Wella® and Whisper®. The P&G community includes operations in approximately 70 countries worldwide. Please visit http://www.pg.com for the latest news and in-depth information about P&G and its brands.
– See more at: http://news.pg.com/press-release/pg-corporate-announcements/mars-incorporated-buy-significant-portion-procter-gambles-p#sthash.vDRmhluc.dpuf
One Response to “Mars, Incorporated to Buy Significant Portion of Procter & Gamble’s Pet Food Business”
Leave a Reply
You must be logged in to post a comment.
October 11th, 2014 at 6:30 pm
Vivienne Westwood Shop usa
So is red, I began to design targeted young fashion clothing line for large-scale productionVivienne Westwood UK In 2012, the enterprise electricity supplier strategy to be successful, revenue from online sales accounted for a quarter of the total reve…