- Mars, Incorporated agrees to acquire IAMS(R), EUKANUBA(R), and NATURA(R) brands for US$2.9 Billion in cash.
- Brands have strong strategic fit with Mars' Petcare business: Acquisition complements Mars' global Petcare portfolio.
- Transaction is subject to regulatory approvals and excludes the majority of European markets.
MCLEAN, Virginia and CINCINNATI, April 9, 2014 /PRNewswire/ -- 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.
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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.
Media and Investor Contacts:
Jeanette Fielding- Mars Petcare Media Contact- 973.691.3536
Paul Fox – P&G Media Contact – 513.983.3465
John Chevalier – P&G Investor Relations – 513.983.9974
