Tyson sells pet treat brands to General Mills for US$1.2B

Tyson Foods, Inc. is selling its pet treats business to General Mills, Inc. for approximately US$1.2 billion.

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Photo by shymar27, Bigstock.com
Photo by shymar27, Bigstock.com
Adapted from a press release
Tyson Foods, Inc. is selling its pet treats business to General Mills, Inc. for approximately US$1.2 billion.
The sale of the natural pet treat business is expected to be completed by the end of the company’s 2021 fiscal year, subject to regulatory approval and other customary closing conditions. It includes the Nudges, True Chews and Top Chews brands, as well as a production facility in Independence, Iowa, USA. Tyson Foods will continue to provide meat ingredients for the pet treats business after General Mills assumes ownership.
“We’re proud of the tremendous success of this business and the diligent work by our team to meet growing demand for high quality pet treats,” said Noelle O’Mara, group president of Prepared Foods for Tyson Foods, in a press release. “We believe the time is right to transition these great brands to an established pet foods business where they will complement their existing portfolio.”
Sales generated by Tyson’s pet treat business totaled more than US$240 million in the 12 months ended April 3, 2021. The market fundamentals are currently strong in the US$35 billion pet food industry, which has witnessed an increase in pet ownership during the pandemic.
Tyson Foods’ pet treats business and the approximately 300 team members involved in it will become part of General Mills after the sale is completed. Tyson Foods entered the pet treat market with the launch of True Chews dog treats in 2010. It expanded to include the Nudges brand in 2011 and Top Chews in 2012. The brands offer natural treats that are made in the USA.
BofA Securities is acting as lead financial advisor and Siebert Williams Shank & Co. is acting as financial advisor to Tyson Foods on this transaction.

General Mills pet food and treat business

According to Petfood Industry’s Top Pet Food Companies Current Data, General Mills is a North American manufacturer and marketer of consumer foods and pet food; entering the pet food market in 2018 with the acquisition of Blue Buffalo. Blue Buffalo is manufactured in the U.S. through a hybrid network of owned and contracted facilities. The company's dry formulas include LifeSource Bits, a blend of nutrients and antioxidants.
Brands: Basics, Wilderness, Freedom, Life Protection Formula, Natural Veterinary Diet
Geographic markets served: North America, Asia Pacific
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