Thursday, September 21, 2023

Tyson Foods selling pet treats business to General Mills for $1.2B

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SPRINGDALE, Ark. — Tyson Foods Inc. is selling its successful pet treats business to General Mills Inc. for approximately $1.2 billion, the company announced.

“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,” said Noelle O’Mara, group president of prepared foods for Tyson Foods. “We believe the time is right to transition these great brands to an established pet foods business where they will complement their existing portfolio.”

The sale of the business is expected to complete by the end of the company’s 2021 fiscal year, subject to regulatory approval and other customary closing conditions. It includes the Nudges®, True Chews®, Top Chews® brands and the production facility in Independence, Iowa.

Tyson Foods will continue to provide meat ingredients for the pet treats business after General Mills assumes ownership.

Sales generated by Tyson’s pet treat business totaled more than $240 million in the 12 months ended April 3, 2021. The market fundamentals are currently strong in the $35 billion pet food industry, which has witnessed an increase in pet ownership during the pandemic, the company added.

Tyson Foods’ pet treats business and the approximately 300 team members involved in it will become part of General Mills after the sale is completed.

Tyson Foods entered the pet treat market with the launch of True Chews dog treats in 2010. It expanded to include the Nudges brand in 2011 and Top Chews in 2012. The brands offer natural treats that are made in the United States.

BofA Securities is acting as lead financial advisor and Siebert Williams Shank & Co. is acting as financial advisor to Tyson Foods on this transaction.

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