General Mills to buy US pet food manufacturer Blue Buffalo for $8bn
General Mills acquisition of Blue Buffalo Pet Products : US food company General Mills has agreed to acquire US pet food manufacturer Blue Buffalo Pet Products for about $8 billion to consolidate its position in the wholesome natural pet food category in the US.
General Mills Acquisition of Blue Buffalo Pet Products
According to the latest food acquisition news, General Mills will pay the shareholders of the US pet food company $40 per share in an all-cash deal.
The US pet food manufacturer is headquartered in Wilton, Connecticut. Established in 2002, Blue Buffalo Pet Products manufactures natural foods and treats for dogs and cats under the Blue brand. Included in this pet food brand range are Blue Life Protection Formula, Blue Basics, Blue Freedom, Blue Wilderness and Blue Natural Veterinary Diet.
Blue Buffalo sales revenue for the fiscal year 2017 was $1.275 billion and in the last three years, the US pet food company has achieved compound annual net sales growth of 12%.
Commenting on General Mills acquisition of Blue Buffalo Pet Products, Jeff Harmening – Chairman and CEO of General Mills, said: “In pet food, as in human food, consumers are seeking more natural and premium products and we have tremendous respect for how attentive Blue Buffalo has been to the needs of their consumers, pet parents and pets, as they have built their brand.
“As we have done with Annie’s, Lärabar and EPIC, we expect to help Blue Buffalo by leveraging our extensive supply chain, R&D and sales & marketing resources. We will in turn benefit from their experience building one of the strongest pull brands in the CPG world.”
General Mills plans to operate Blue Buffalo Pet Products as a new pet operating segment post completion of the acquisition, alongside its other operating segments – North American Retail, Convenience Stores & Foodservice, Europe & Australia, and Asia & Latin America.
Billy Bishop – CEO of Blue Buffalo Pet Products, commenting on General Mills acquisition of Blue Buffalo Pet Products, said: “I have been impressed by General Mills’ strong track record of accelerating growth for its natural and organic brands, while giving them the freedom to maintain their own unique culture and identity.
“General Mills will be a tremendous home for our BLUE brand as our talented team of over 1,700 ‘Buffs’ joins this new extended family.”
Billy Bishop also said that General Mills acquisition of Blue Buffalo Pet Products will provide considerable, instant value for the shareholders of the US pet food company.
The General Mills acquisition of Blue Buffalo Pet Products will be completed following receipt of regulatory approvals and meeting of other customary closing conditions, which are all likely to be achieved by the end of General Mills’ fiscal 2018.
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