Chilean company Empresas Iansa has announced the sale of its pet food business to Brazilian group Camil for US$48 million.

Empresas Iansa is a long-established player in the agricultural, animal feed, sugar and sweeteners industries. The group entered the pet food business a few years ago with the acquisition of a company formerly known as Industrial Punto Futuro, owner of the pet food brands Cannes and Minninos (dog and cat food, respectively).

Sale represents 20% of Chilean pet food consumption

Iansa sold its pet food business to reinforce its focus on the sugar industry, its core business. The sale includes a pet food production facility with an annual capacity of 4,500 tons per month, which represents one-fifth of the total pet food consumption in Chile. Iansa is currently one of the biggest players in the country, competing with multinational labels such as Champion, Nutripro and Nestlé Purina.

The product array of Iansa includes dry, wet and snacks in the dog and cat food segments, including Felinne’s, a premium product line for cats. Specifically for dogs, Cannes includes an ample assortment of products, including for puppies, adults, senior dogs and small breeds.

Brazil strengthens pet food position in Chile

On the buyer’s side, Brazilian group Camil first entered Chile back in 2009 with the purchase of the rice business of Empresas Tucapel S.A, a leading Chilean rice products manufacturer. Camil then acquired the parent company.

With this new acquisition, the local market will not experience a reorganization: Tucapel, which is new to the pet food business in Chile, will absorb the entire business of Iansa, entering as a new pet food player in the local market.

However, the Brazilian pet food industry, which is active across South America, will increase its positioning in Chile, augmenting its national capacity by more than 50,000 metric tons annually. Brazil is the second-largest producer country of pet food after the U.S.

“This latest acquisition is an important step toward strengthening competitiveness in Chile, a country in which Camil has a history of constant growth and profitability through its subsidiary Tucapel,” said the company.