General Mills is expanding its pet offering with the planned acquisition of Tyson Foods' pet treats business.
The Golden Valley-based food giant is acquiring the business that includes Nudges, Top Chews and True Chews brands for $1.2 billion, a news release says.
The pet food industry is a $35 billion a year industry, and has seen an increase thanks to pet ownership growing during the COVID-19 pandemic, Tyson noted in a news release.
“Pet food is a high-growth category, fueled by the humanization of pets, a trend that has only increased during the pandemic,” Bethany Quam, General Mills Group President, Pet segment, said in a statement.
“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.”
As part of this deal, General Mills is also acquiring a manufacturing facility in Independence, Iowa.
“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,” Noelle O’Mara, group president of Prepared Foods for Tyson Foods, said in a statement. “We believe the time is right to transition these great brands to an established pet foods business where they will complement their existing portfolio.”
Sales generated by Tyson's pet treat business totaled more than $240 million in the 12 months that ended on April 3 of this year.
The deal is expected to close in the first quarter of 2022 and is subject to regulatory approval and other conditions.