Spectrum Brands To Buy Procter & Gamble's European Pet Food Business

(RTTNews) - Spectrum Brands Holdings, Inc. (SPB) announced that it agreed to acquire Procter & Gamble's (PG) European pet food business, consisting of the complementary IAMS and Eukanuba premium brands for dogs and cats. Financial terms of the transaction were not disclosed.

Spectrum Brands stated that the business has about $200 million of annual sales and will provide Spectrum Brands' United Pet Group division access to the $21 billion European dog and cat food market which is growing at an estimated 3 to 5 percent annually.

The acquisition has been approved by Spectrum Brands' Board of Directors.

In April, P&G announced the sale to Mars, Inc. of 80% of its global Pet Care business, including North America and Latin America. Europe was not included in that deal with the exception of Russia and Turkey. Mars later agreed to buy an additional 10% of the business in additional markets including Japan, Australia and South Africa.

With the Spectrum transaction, P&G said it now has closed deals or reached agreements to sell 100% of its Pet Care business. The deal will close in 2015, subject to regulatory approvals.

P&G noted that the geographic regions included in the acquisition, which account for approximately 10% of P&G's former pet care global sales, include 42 markets throughout Europe.