Procter & Gamble to sell most of its pet food business to Mars for $2.9 bn

US multinational consumer goods company Procter & Gamble Co (P&G) yesterday struck a deal to sell most of its pet food business to Mars Inc for $2.9 billion in cash in order to focus on its core consumer business.

P&G is selling its Lams, Eukanuba, and Natura brands, which will join Mars Petcare's billion-dollar portfolio of brands that include Pedigree, Whiskas, Banfield, and Royal Canin.

The geographic regions included in the acquisition, which account for approximately 80 per cent of P&G Pet Care's global sales, include North America, Latin America and certain other countries.

The deal includes an option for Mars to acquire the business in several additional countries.

P&G said that markets not included in the transaction are primarily European Union countries, and it is also looking at alternate plans to sell its Pet Care business in these markets.

Mars Petcare is one of the world's leading pet food and veterinary care providers and employs more than 35,000 people across 50 countries.

Mars Petcare Global President, Todd Lachman, said, ''The deal reinforces our leadership in pet nutrition and veterinary science, attracts world class talent and grows our world leading portfolio.

P&G's chairman, president and CEO, 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.''