Published On: Sun, May 16th, 2021

General Mills to acquire pet treats business of Tyson Foods for $1.2bn

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has agreed to acquire the pet treats business of , which includes the Nudges, True Chews brands, and Top Chews, for $1.2 billion in an all-cash deal.

According to General Mills, the deal offers $225 million in estimated tax benefit, which means the effective price for the acquisition is $975 million.

Jeff Harmening – General Mills chairman and CEO said: “This acquisition advances our Accelerate strategy and further reshapes our portfolio for growth by adding an attractive business to our fast-growing Pet platform.

“Today’s announcement reinforces our commitment to using all capital allocation levers – including investment in the business, dividend growth, strategic acquisitions, and share repurchases – to drive top-tier shareholder returns over the long term.”

General Mills to acquire pet treats business of Tyson Foods for $1.2bn

General Mills to acquire pet treats business of Tyson Foods for $1.2bn. Photo courtesy of Mat Coulton from Pixabay.

The pet treats portfolio of Tyson Foods earned over $240 million in net sales in the 12 months ended 3 April 2021. As part of the deal, General Mills will also gain a manufacturing facility located in Independence, .

Tyson Foods said that it will continue to supply meat ingredients for the pet treats business after General Mills takes over ownership.

The pet treats business involved in the deal employs nearly 300 team members, who will become part of General Mills after the completion of the sale.

Tyson Foods forayed into the pet treat market 2010 by launching True Chews dog treats. The business expanded by including the Nudges natural dog treats brand in 2011 and Top Chews natural dog treats brand in 2012.

All the brands offer natural treats that are manufactured in the US.

Noelle O’Mara – group president of Prepared Foods for Tyson Foods said: “We’re proud of the tremendous success of this business and the diligent work by our team to meet growing demand for high quality pet treats.

“We believe the time is right to transition these great brands to an established pet foods business where they will complement their existing portfolio.”

The deal, which is subject to regulatory approval and other customary closing conditions, is expected to be wrapped up in the first quarter of fiscal 2022.

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