Procter & Gamble Co. (P&G) is selling its remaining petfood business to Spectrum Brands Holdings Inc., as the company plans to focus on its main home and personal care businesses. The transaction includes P&G's Iams and Eukanuba brands in most of Europe.
P&G completed the sale of about 80% of its petfood business to Mars Inc. in August 2014, including the Iams, Eukanuba and Natura brands in North America, Latin America and other select countries. Mars also exercised the option to purchase P&G's petfood business in some parts of Asia Pacific, Middle East and Africa.
A.G. Lafley, CEO of P&G, is cutting costs and focusing on the company's leading brands. He said P&G will divest or discontinue as many as 100 brands over the next two years, leaving 70 or 80 that account for more than 95% of its profit. Spectrum, whose pet care brands include Tetra and Furminator, currently has pet care sales of about US$600 million per year.
The transaction is expected to close in 2015.