Tyson Foods, Inc., Springdale, Arkansas, is selling its pet treats business to General Mills, Inc., for approximately $1.2 billion, the company recently announced.
The sale of the business, a leading player in natural pet treats, 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. 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. “We believe the time is right to transition these great brands to an established pet foods business where they will complement their existing portfolio.”
“This acquisition advances our accelerate strategy and further reshapes our portfolio for growth by adding an attractive business to our fast-growing pet platform,” said General Mills Chairman and Chief Executive Officer Jeff Harmening. “This announcement reinforces our commitment to using all capital allocation levers—including investment in the business, dividend growth, strategic acquisitions, and share repurchases—to drive top-tier shareholder returns over the long term.”
“Pet food is a high-growth category, fueled by the humanization of pets, a trend that has only increased during the pandemic,” said Bethany Quam, General Mills group president, pet segment. “By adding these trusted pet treat products to our portfolio, we are strengthening our position in this attractive category. This acquisition is highly complementary to our existing business, combining BLUE’s leading position in natural pet food with Nudges, Top Chews and True Chews strong portfolio of natural meat treats for pets. We’re excited for the opportunity to provide pet parents with more ways to feed and treat their pets like family.”
Tyson Foods’ pet treats portfolio generated more than $240 million in net sales in the 12 months ended April 3, 2021. As part of the acquisition, General Mills is also acquiring a manufacturing facility in Independence, Iowa.
The market fundamentals are currently strong in the $35 billion pet food industry, which has witnessed an increase in pet ownership during the pandemic, Tyson officials said.
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.
