|
P&G buys Iams pet food
|
 |
August 11, 1999: 9:44 a.m. ET
Will pay more than $2B for maker of premium cat and dog foods
|
NEW YORK (CNNfn) - Procter & Gamble agreed early Wednesday to buy privately held pet food maker Iams Co. in a deal worth more than $2 billion cash.
Cincinnati-based Procter & Gamble (PG) will pay $2.05 billion for the Dayton, Ohio-based maker of premium cat and dog food, and assume $250 million in the company's debt.
The acquisition is Procter & Gamble's largest ever and marks its entry into the pet food market, the companies said. Procter & Gamble, a component of the Dow industrial average, makes Folger's coffee, Tide laundry detergent and other well-known products.
The worldwide pet food market is a $25 billion a year business, and the premium sector accounts for about 10 percent of all sales, the companies said. Iams, maker of the Iams and Eukanuba brands, has annual sales of about $800 million. The company's headquarters will remain in Dayton "for at least several years," the two firms announced.
The acquisition, which is subject to regulatory clearance, should be completed within about 30 days, the companies said.
Shares of Procter & Gamble gained 2-5/16 to 93-3/4 Tuesday. 
|
|
|
|
|
|
Procter & Gamble
Iams
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
