The deal is expected to close this fiscal year.
MINNEAPOLIS and WILTON, CT — General Mills Inc. will acquire Blue Buffalo Pet Products Inc. in an $8 billion deal, the companies announced.
“The transaction establishes General Mills as the leader in the U.S. Wholesome Natural pet food category, the fastest growing portion of the overall pet food market, and accelerates its portfolio reshaping strategy,” according to the release.
General Mills will pay $40 per share in cash for Blue Buffalo.
Founded in 2002, Blue Buffalo is the fastest-growing major pet food company making natural foods and treats for dogs and cats, according to the release.
“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 Jeff Harmening, General Mills’ chairman and CEO.
Billy Bishop, CEO of Blue Buffalo, said: “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.”
The transaction, which has been approved by the boards of directors of General Mills and Blue Buffalo, is subject to regulatory approvals and other customary closing conditions. It is expected to close by the end of General Mills’ fiscal 2018.