General Mills Acquires Tyson Foods’ Pet Treat Business for $1.2 Billion

General Mills announced their acquisition of Tyson Foods’ pet treats business for $1.2 billion. The treats include the Nudges, Top Chews and True Chews, which are leaders in the natural meat treats for pets.

In 2018, General Mills entered the pet food business by acquiring Blue Buffalo for $8 billion, which has been a success ever since. General Mills is also best known for their brands Cheerios, Betty Crocker, Pillsbury and more.

“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 CEO Jeff Harmening in a press release. “Today’s announcement reinforces our commitment 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.”

The pet treats portfolio at Tyson Foods made more than $240 million in sales over 12 months in 2021. As part of the acquisition, General Mills will also own a manufacturing facility in Independence, Iowa.

“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 of Pet segment, in the same press release. “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.”

Related: Shameless Pets: How One Company is Upcycling Food Waste and Supporting Food Producers

Earlier this month, Nudges released two new products to their line of meat treats for dogs. These two new products include a long-lasting jerky bone chew and natural beef jerky treats for small-breed dogs.

“When pet parents are searching for treats for their dogs, they want to ensure that they are high quality and made with the finest ingredients,” said Jay Lefforge, senior brand manager at Nudges Natural Dog Treats, in a statement. “Jerky Bones and Jerky Chews are all-natural and rawhide-free, making them easy for dogs to digest while also keeping them entertained with a tough, but tasty texture.”

According to Research and Markets, the global pet treats market is expected to reach $72.6 billion by 2027. Due to the pandemic, the pet treat market grew and was at an estimated $5.7 billion in 2020, but is now growing at a CAGR of 19.1 percent over the forecasted period of 2020-2027.

Some of the competitors in this market include Blue Buffalo, Dogswell, Zuke’s Natural Dog Treats and more.

The press release stated that “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 the first quarter of fiscal 2022, subject to regulatory approval and other customary closing conditions.”