Mars, known primarily as a candy company, will acquire the Iams, Eukanuba and Natura brands, boosting its portfolio, which already includes Pedigree, Whiskas, Banfield and Royal Canin.
Mars's existing pet-food portfolio includes Pedigree, Whiskas, Banfield and Royal Canin.The regions included in the deal account for about 80% of P&G’s global pet care’s sales, and the pact includes an option for Mars to acquire the business in several additional countries. The markets not included are primarily in the European Union, and P&G said it is developing alternate plans to sell its pet-care business in those markets.
The companies expect to complete the deal in the second half, and it is subject to regulatory approval.P&G, the world’s largest consumer-products company, has been cutting costs and eliminating jobs to catch up with its rivals’ productivity levels and help fund new products, ranging from unit-dose Tide Pods laundry detergent to thicker Bounty paper towels. Its brands also include Gillette razors and Pampers diapers.