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P&G to exit pet food with sale of European business

Published 23/09/2014, 15:09
P&G to exit pet food with sale of European business
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(Reuters) - Procter & Gamble Co (N:PG) said it would sell the last of its pet food business to consumer products company Spectrum Brands Holdings Inc (N:SPB) as it focuses on more profitable lines such as Tide detergent, Gillette razors and Pampers diapers.

The company, which had been under pressure from investors to exit the pet food category, sold 80 percent of its global pet food business, including the Iams and Eukanuba brands, to privately held confectioner Mars Inc for $2.9 billion (1.77 billion pounds) in April.

Mars later acquired an additional 10 percent stake for an undisclosed amount. Europe accounted for most of the rest of the business. ]

Spectrum, whose pet care brands include Tetra, Furminator, and Dingo, said the deal gave it access to the $21 billion European dog and cat food market.

Terms of the transaction were not disclosed.

Spectrum's shares were up 2.9 percent at $88.65 in early trading on the New York Stock Exchange. P&G's shares were up 0.5 percent at $84.86.

P&G said last month it would consider selling 90 to 100 brands whose sales have been declining for the past three years as it seeks to revive growth and save costs.

P&G's European pet food business has annual sales of about $200 million.

(Reporting by Ramkumar Iyer in Bangalore; Editing by Maju Samuel)

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