General Mills Dives Deeper Into Pet Market With This $1.45 Billion Acquisition: Details

General Mills, Inc. GIS disclosed a deal to acquire Whitebridge Pet Brands’ North American premium cat feeding and pet treating business from NXMH for $1.45 billion.

The acquisition includes the Tiki Pets and Cloud Star brands, which are leaders in the $24 billion cat feeding and pet treating segments of the $52 billion U.S. pet food market.

The North American Whitebridge Pet Brands business generated approximately $325 million in U.S. Nielsen-measured retail sales in the past twelve months, predominantly in the pet specialty and E-commerce channels. 

General Mills plans to fund the acquisition with cash on hand and new debt. This transaction aligns with General Mills’ Accelerate strategy, aiming to enhance growth in core markets and global platforms.

Also, as part of the deal, General Mills will take over two manufacturing facilities in Joplin, Missouri. NXMH will retain Whitebridge Pet Brands’ European operations and brands.

The transaction is expected to close in the third quarter of fiscal 2025, pending regulatory approval and other customary closing conditions.

Jon Nudi, group president, North America Pet, International, and North America Foodservice, General Mills said, “These brands complement our Blue Buffalo portfolio and will help us incrementally grow in Cat feeding and Treats. We’re excited to welcome the North American Whitebridge team to General Mills and to provide pet parents with an expanding portfolio of brands to feed and treat their pets like family.”

In September, the company signed definitive agreements to sell its North American yogurt business to Lactalis and Sodiaal, leading French dairy companies, for a total of $2.1 billion.

As of August 25, the company had cash and cash equivalents of $468.1 million.

Investors can gain exposure to the stock via Invesco Food & Beverage ETF PBJ and First Trust Nasdaq Food & Beverage ETF FTXG.

Price Action: GIS shares are up 0.60% at $65.62 at the last check Thursday.

Photo by huoadg5888 via Pixabay

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