You can buy a lot of kibble for $8 billion.
According to Reuters and CNBC, Blue Buffalo Pet Products has been purchased by consumer product giant General Mills in a deal reported to be worth $8 billion in cash.
The move marks General Mills’ entry into the pet food business, said to be the “fastest growing category in the pet food market.”
CNBC reports that the deal is expected to close by the end of 2018.
“The addition of BLUE to our family of well-loved brands provides General Mills with the leading position in the large and growing Wholesome Natural pet food category and represents a significant milestone as we reshape our portfolio to drive additional growth and value creation for our shareholders,” said General Mills chairman and chief executive officer, Jeff Harmening.
“I have been impressed by General Mills’ strong track record of accelerating growth for its natural and organic brands, while giving them the freedom to maintain their own unique culture and identity. General Mills will be a tremendous home for our BLUE brand as our talented team of over 1,700 ‘Buffs’ joins this new extended family,” said Billy Bishop, Blue Buffalo chief executive officer. “From the first meeting Jeff and I had, I felt a strong cultural fit between our two companies and believe they will be a great partner in our mission to reach more pet parents and feed more pets. This transaction creates significant, immediate value for our shareholders, as it recognizes the strength of our competitively advantaged business model. Along with our leadership team, we look forward to working with General Mills to continue growing the BLUE brand for many years to come.”
Blue Buffalo was started by the Bishop family of Wilton. It went public in 2015.