Welcome Guest to Happi

Subscribe Free: Magazine | eNewsletter

current issue May 2015
 •  Price Change at Lonza  •  Angus Names New CFO  •  Summer's Here at PartyLite!  •  Idea Contest Seeks Solution Guru  •  WFFC Honors Its Own
Print

P&G May Sell Pet Food Unit to Del Monte



Published October 23, 2013
Related Searches: share industry men america
Post a comment
With sales stalling and expenses rising, Procter & Gamble is considering selling its pet food business to boost its stock price, free up some cash and become more focused on its core business, according to industry reports. The company may have a willing buyer for its Iams pet-food unit in Meow Mix maker Del Monte Foods Co.



P&G, which brought back AG Lafley as CEO in May amid calls from investors to improve sales, could boost its share price by selling assets including the Iams division, said shareholder HighMark Capital Management Inc. Del Monte Foods is now a logical buyer of Iams, said Exane BNP Paribas, because the private-equity owned-company is seeking to expand its pet products business after agreeing this month to sell its canned peaches and corn division for $1.68 billion.



P&G is languishing at a cheaper profit multiple than 86% of peers, according to data compiled by Bloomberg. Selling Iams could fetch P&G about $2.5 billion, said Sanford C. Bernstein & Co. For Del Monte Foods, buying the unit would bolster its position in the $20 billion U.S. pet-food and treats industry, pushing it past Mars Inc. for the No. 2 spot  in North America.



Neither P&G, nor Del Monte commented on the rumor.



blog comments powered by Disqus