Breaking News

Going to the Dogs

April 9, 2014

P&G sheds pet care business for $2.9B.

How much is that dog food business in the window? Try nearly $3 billion. Confectionery company Mars Inc said it would buy Procter & Gamble Co's pet food brands Iams, Eukanuba and Natura in the US and Latin America for $2.9 billion to beef up its pet food business.
 

Mars will buy the rights to the three brands in North America, Latin America and other regions excluding most European markets, the companies said in a statement today. The regions included in the deal account for about 80% of P&G pet care's global sales. Mars, whose pet care business includes brands such as Pedigree, Whiska, Banfield and Royal Canin, also has the option to acquire the brands in several other countries.
 

P&G said it was working on alternate plans to sell its pet care business in European Union countries. P&G said it expected core earnings to be reduced by 3 cents per share in fiscal 2013 and by 4 cents per share in fiscal 2014 after it accounts for the business as a discontinued operation.
 

P&G said it did not expect the deal to hurt its forecast for core earnings growth per share for 2014 or have a material impact on 2015 results. Mars, controlled by the Mars family, had annual sales of more than $33 billion in 2013 and was ranked 5th in Forbes' list of America's largest private companies. P&G had sales of $84.16 billion in 2013.


Now the big question is, what will P&G do with all that cash? Observers insist the industry is ripe for a new round of consolidation and P&G has plenty of money to make a move.

 

 

blog comments powered by Disqus
  • Cosmetic Chemists Head to Orlando Next Month

    Cosmetic Chemists Head to Orlando Next Month

    September 26, 2016
    Organizing Chair Guy Padulo explains why you should attend the IFSCC Congress.

  • Restoring Rembrandt

    Restoring Rembrandt

    Christine Esposito, Associate Editor||September 26, 2016
    Ranir LLC has acquired Rembrandt, an iconic name in teeth whitening, and plans to make it a staple in the value segment.

  • Active Agents

    Active Agents

    September 19, 2016
    On the surface, surfactants may seem staid, but the market, and the supplier activity driving it, is bubbling.

  • Back to School

    Back to School

    Tom Branna, Editorial Director||September 1, 2016
    It may be September, but class was in session this summer during the Private Label Manufacturers Association’s Executive Educ

  • What

    What's In Your Formula?

    Christine Esposito, Associate Editor||September 1, 2016
    A look at the ingredients beauty brands are using to fuel their formulations and capture consumers’ attention.

  • How Green Is Your Surfactant?

    How Green Is Your Surfactant?

    Tom Branna, Editorial Director ||September 1, 2016
    Suppliers offer a range of solutions to help household and personal care product formulators develop formulas