Mars buys Iams, Eukanuba, Natura brands in expanding pet care portfolio

Procter & Gamble’s (P&G’s) Iams, Eukanuba and Natura pet food brands will now be part of the Mars pet food portfolio. In a $2.9 billion cash deal, Mars Inc. seeks to acquire the brands to further expand its billion-dollar pet care division, which already includes Banfield Pet Hospitals, Royal Canin, Pedigree and Whiskas. Subject to regulatory approvals, the deal should be done by the second half of 2014.

The acquisition gives Mars Petcare approximately 80 percent of P&G Pet Care’s global sales. The deal does not include European Union markets but does include North America, Latin America and other selected countries. According to a P&G press release, the company plans to exit the European market as well but is developing an alternative plan to sell that market.

While P&G says it’s selling off pet care in order to focus its portfolio on core businesses, Mars Petcare Global President Todd Lachman says expansion is an “exceptionally strategic” move for Mars. “The deal reinforces our leadership in pet nutrition and veterinary science, attracts world class talent and grows our world leading portfolio,” he says in a release.