Miller Magazine Issue: 138 June 2021

28 MILLER / june 2021 NEWS General Mills announced that it has entered into a definitive agreement to acquire Tyson Foods’ pet treats business for $1.2 billion in cash in a transaction that provides an estimated tax benefit of $225 million, equat- ing to an effective purchase price of $975 million. The business, which includes the Nudges, Top Chews and True Chews brands, is the leader in natural meat treats for pets. “This acquisition advances our Accelerate strategy and further reshapes our portfolio for growth by adding an attractive business to our fast-growing Pet platform,” said General Mills Chairman and Chief Executive Officer Jeff Harmening. “Today’s announcement reinforces our com- mitment to using all capital allocation levers – including investment in the business, dividend growth, strategic acquisitions, and share repurchases – to drive top-tier shareholder returns over the long term.” “Pet food is a high-growth category, fueled by the humanization of pets, a trend that has only increased during the pandemic,” said Bethany Quam, General Mills Group President, Pet segment. “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, com- bining 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 oppor- tunity to provide pet parents with more ways to feed and treat their pets like family.” Tyson Foods’ pet treats portfolio generated more than $240 million 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. The company intends to fund the acquisition with cash on hand and short-term borrowing. The transaction is ex- pected to be modestly accretive to General Mills earn- ings in the first 12 months following completion, exclud- ing transaction and integration expenses. The company expects the transaction to close in the first quarter of fis- cal 2022, subject to regulatory approval and other cus- tomary closing conditions. General Mills is a leading global food company whose purpose is to make food the world loves. Its brands in- clude Cheerios, Annie's, Yoplait, Nature Valley, Häa- gen-Dazs, Betty Crocker, Pillsbury, Old El Paso, Wanchai Ferry, Yoki, BLUE and more. Headquartered in Minneapo- lis, Minnesota, USA, General Mills generated fiscal 2020 net sales of U.S. $17.6 billion. General Mills acquires Tyson Foods’ Pet Treats Business