The strategic move for Mars Petcare will expand its already large portfolio of pet brands, and signals Proctor & Gamble’s move to reduce its pet segment.
“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,” A.G. Lafley, P&G’s chairman, president and chief executive officer, said. “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 percent 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.
“This acquisition is a perfect fit with our Mars Petcare vision of making A Better World For Pets,” Todd Lachman, Mars Petcare global president, said. “The deal reinforces our leadership in pet nutrition and veterinary science, attracts world class talent and grows our world leading portfolio.”
The companies expect to complete the transaction in the second-half of 2014, subject to regulatory approvals.