Spectrum Brands Holdings Inc., a global and diversified consumer products company with market-leading brands, has completed the acquisition of Procter & Gamble’s European pet food business, consisting of the complementary Iams and Eukanuba premium brands for dogs and cats. Financial terms of the accretive transaction were not disclosed. A definitive agreement was announced on September 23.
“The addition of these leading brands in an adjacent category better balances the product portfolio of our global pet business while significantly expanding its product offerings and geographic footprint,” said Dave Lumley, CEO of Spectrum Brands Holdings.
“We see major cross-selling opportunities given the strength of our existing aquatics and companion animal supplies business in continental Europe and the particularly strong position of these dry pet food brands in the UK,” Lumley said. “Over the next few years, we also expect important synergies in overhead, SG&A, and manufacturing and distribution.”
The Iams and Eukanuba European pet food business has annual sales of approximately $200 million. The total European dog and cat food market is estimated to be $21 billion annually and growing at 3 to 5 percent per year.
“I view the Iams and Eukanuba brands as iconic in the specialty pet food category,” said David Maura, chairman of the board of Spectrum Brands Holdings. “With this acquisition, we are strategically strengthening our companion animal product portfolio and investing behind our global pet supplies business. We expect this deal to be accretive in year one, but more meaningfully so in the second year, once fully integrated. We welcome the P&G employees to the Spectrum Brands family and look forward to driving this business to an even higher performance level and providing outstanding service to our customers.”
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