General Mills Completes Acquisition of Whitebridge Pet Brands’ North American Premium Cat Feeding and Pet Treating Business

Rhea-AI Summary

General Mills (NYSE: GIS) has completed the acquisition of Whitebridge Pet Brands' North American premium Cat feeding and Pet treating business from NXMH for $1.45 billion. The acquisition includes the Tiki Pets and Cloud Star brands, marking General Mills' fifth pet category acquisition since 2018. The acquired business generated approximately $325 million in U.S. Nielsen-measured retail sales in the past twelve months, primarily in pet specialty and E-commerce channels.

The deal includes two manufacturing facilities in Joplin, Missouri, while NXMH retains Whitebridge's European operations. This acquisition follows General Mills' previous pet industry investments: Blue Buffalo (2018), Nudges, Top Chews, and True Chews (2021), Fera Pets (2023), and Edgard & Cooper (2024).

Positive

• Acquisition of a growth leader in Cat feeding and Pet treating segments
• $325 million in retail sales from acquired business
• Strategic expansion in pet specialty and E-commerce channels
• Addition of two manufacturing facilities enhancing production capabilities

Negative

• Significant capital outlay of $1.45 billion may impact short-term financial flexibility

Insights

M&A Analyst

The $1.45 billion acquisition of Whitebridge Pet Brands' North American operations represents a strategic expansion of General Mills' pet portfolio, particularly in the premium segment. With $325 million in retail sales, the acquisition multiple of approximately 4.5x sales suggests a premium valuation, reflecting the high-growth nature of the premium pet food market. The deal strengthens GIS's position in specialty retail and e-commerce channels, diversifying from traditional mass retail presence. The vertical integration through two manufacturing facilities in Joplin adds operational flexibility and potential cost synergies.

This marks GIS's fifth pet-focused acquisition since 2018, demonstrating an aggressive expansion strategy in the pet segment. The premium positioning of Tiki Pets and Cloud Star complements the existing portfolio while providing exposure to the faster-growing cat food segment. For context, the premium pet food market has been growing at 2-3x the rate of mainstream segments, with e-commerce penetration continuing to increase.

Market Research Analyst

The pet care industry's premiumization trend makes this acquisition particularly timely. Premium pet food segments have shown resilience during economic downturns, with pet parents maintaining spending on high-quality products. The addition of Whitebridge's brands, especially in the underpenetrated cat segment, positions GIS to capture a larger share of the $50+ billion U.S. pet food market. The specialty retail and e-commerce focus aligns with changing consumer purchase behaviors, where premium products typically see higher online penetration rates.

Simply put: Think of this like buying a luxury car brand - it's expensive upfront but brings in customers who spend more and stay loyal. For everyday investors, this means GIS is buying its way into the 'high-end pet store' business, where profit margins are typically higher than regular pet food sold in grocery stores.

MINNEAPOLIS--(BUSINESS WIRE)-- General Mills, Inc. (NYSE: GIS) today announced it has completed the acquisition of Whitebridge Pet Brands’ North American premium Cat feeding and Pet treating business from NXMH in a transaction valued at $1.45 billion. The business, which includes the Tiki Pets and Cloud Star portfolio of brands, is a growth leader in the Cat feeding and Pet treating segments.

This completed transaction marks the fifth acquisition by General Mills in the Pet category:

• Blue Buffalo (2018)
• Nudges, Top Chews, and True Chews (2021)
• Fera Pets (2023)
• Edgard & Cooper (2024)
• Whitebridge Pet Brands - North America (2024)

The North American Whitebridge Pet Brands business generated approximately $325 million in U.S. Nielsen-measured retail sales in the past twelve months, predominantly in the pet specialty and E-commerce channels. As part of the acquisition, General Mills assumed operations of two manufacturing facilities in Joplin, Missouri. NXMH retains Whitebridge Pet Brands’ European business and brands.

About General Mills

General Mills makes food the world loves. The company is guided by its Accelerate strategy to boldly build its brands, relentlessly innovate, unleash its scale and stand for good. Its portfolio of beloved brands includes household names like Cheerios, Nature Valley, Blue Buffalo, Häagen-Dazs, Old El Paso, Pillsbury, Betty Crocker, Yoplait, Totino’s, Annie’s, Wanchai Ferry, Yoki and more. General Mills generated fiscal 2024 net sales of U.S. $20 billion. In addition, the company’s share of non-consolidated joint venture net sales totaled U.S. $1 billion. For more information, visit www.generalmills.com.

^{Source: NIQ Pet Plus Retail, 52 Weeks Ending 10/05/2024}

View source version on businesswire.com: https://www.businesswire.com/news/home/20241218015358/en/

(Investors) Jeff Siemon: +1-763-764-2301

(Media) Chelcy Walker: +1-763-764-6364

Source: General Mills, Inc.

FAQ

How much did General Mills (GIS) pay for Whitebridge Pet Brands' North American business?

General Mills paid $1.45 billion to acquire Whitebridge Pet Brands' North American premium Cat feeding and Pet treating business.

What is the annual retail sales volume of the Whitebridge Pet Brands business acquired by GIS?

The acquired North American Whitebridge Pet Brands business generated approximately $325 million in U.S. Nielsen-measured retail sales in the past twelve months.

Which brands are included in GIS's acquisition of Whitebridge Pet Brands?

The acquisition includes the Tiki Pets and Cloud Star portfolio of brands.

How many pet industry acquisitions has GIS made since 2018?

This is General Mills' fifth pet category acquisition since 2018, following Blue Buffalo (2018), Nudges, Top Chews, and True Chews (2021), Fera Pets (2023), and Edgard & Cooper (2024).

What manufacturing facilities did GIS acquire in the Whitebridge Pet Brands deal?

General Mills acquired two manufacturing facilities located in Joplin, Missouri, as part of the transaction.