Tyson Foods, Inc. has made it public that it is going to vend off its successful pet treats business to General Mills, Inc. for approximately $1.2 billion.
The sale of the business, a leading player in natural pet treats, is anticipated to be completed by the end of the company’s 2021 fiscal year, liable to regulatory approval and other customary closing conditions. It comprises the Nudges, True Chews and Top Chews brands, as well as a production facility in Independence, Iowa. Tyson Foods will be continuing supplying meat ingredients for the pet treats business after General Mills receives the ownership.
Noelle O’Mara, group president of Prepared Foods for Tyson Foods informed- “We’re proud of the tremendous success of this business and the diligent work by our team to meet growing demand for high quality pet treats. We believe the time is right to transition these great brands to an established pet foods business where they will complement their existing portfolio.”
Sales generated by Tyson’s pet treat business earned revenue of over $240 million in the past one year as on 3rd April, 2021. At present, the market fundamentals are robust in the $35 billion pet food industry, which has observed an increment in pet ownership during the coronavirus pandemic.
Tyson Foods’ pet treats business and the team of about 300 members engaged with it will now become a part of General Mills as soon as the sale is completed.
Tyson Foods forayed into the pet treat market in 2010 with the launch of True Chews dog treats. It diversified to mingle the Nudges brand in 2011 and Top Chews in 2012 with it. The brands deliver natural treats that are manufactured in the USA.
Tyson Foods, Inc. is an American multinational corporation located in Springdale, Arkansas operating as a major brand in the food industry. It is the second largest processor and marketer of chicken, beef, and pork in the world after JBS S.A. It exports the largest percentage of beef out of the United States per year.