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General Mills Acquires Tyson Foods´ Pet Treats Business for USD 1.2bn
Monday 17 May 2021

Minnesota, US-based food company General Mills (NYSE: GIS) has agreed to acquire the pet treats business of Arkansas-based Tyson Foods' (NYSE: TSN) for USD 1.2bn in cash, the company said.

The transaction provides an estimated tax benefit of USD 225m, equating to an effective purchase price of USD 975m. The business, which includes the Nudges, Top Chews and True Chews brands, is a leader in natural meat treats for pets.

The company intends to fund the acquisition with cash on hand and short-term borrowing. The transaction is expected to be modestly accretive to General Mills earnings in the first 12 months following completion, excluding transaction and integration expenses.

The company expects the transaction to close in 1Q22, subject to regulatory approval and other customary closing conditions.

The acquisition advances General Mills strategy to reshape its portfolio for growth by adding Tyson to its Pet platform.

Tyson Foods' pet treats portfolio generated more than USD 240m 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.

Barclays is acting as exclusive financial advisor to General Mills and Faegre Drinker Biddle and Reath is serving as legal counsel.
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Date Published: 17/05/2021

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