MCLEAN, Va. (AP) — Procter & Gamble is selling some of its pet food brands to Mars for $2.9 billion as part of its turnaround plan that includes concentrating on its most profitable core businesses.
The world’s biggest consumer products maker, whose products include Tide detergent and Crest toothpaste, announced Wednesday that it is selling the Iams, Eukanuba and Natura brands in North America, Latin America and certain other countries.
Mars Inc., which is better known for its candy brands, already owns pet care brands such as Pedigree, Whiskas, Banfield and Royal Canin.
The privately held company based in McLean, Va., said that the brands it is getting from P&G will complement the existing brands in its growing pet care business.
The all-cash transaction excludes mostly European Union countries. Procter & Gamble Co. said that it’s developing alternate plans to sell its pet care business in those markets. The company plans on using proceeds from the sale for general corporate purposes.
Cincinnati-based P&G said that its fiscal 2014 core earnings per share growth rate guidance will not be changed. It anticipates that the deal with Mars won’t have a material impact on its fiscal 2015 results.
The transaction is targeted to close during the second half of the year.
Shares of P&G added 64 cents to $81.99 in morning trading.