General Mills, Inc. GIS is bolstering its pet food strategy with the $1.45 billion acquisition of Whitebridge Pet Brands' North American premium Cat feeding and Pet treating business from NXMH. This strategic move aligns with the company’s Accelerate growth strategy, which focuses on expanding its presence in core markets, leveraging global platforms and nurturing local brands to drive sustainable, profitable growth and deliver long-term shareholder value.

The acquisition includes two leading brands in the cat food and pet treating segments, Tiki Pets and Cloud Star. These segments represent a combined $24 billion retail sales within the broader $52 billion U.S. pet food market. By acquiring these popular brands, General Mills aims to strengthen its position in the fast-growing U.S. pet food category and capture additional growth opportunities.

The transaction is expected to close by the third quarter of fiscal 2025. General Mills intends to fund the acquisition through available cash and new debt. As part of the transaction, General Mills will take over the operations of two manufacturing facilities in Joplin, MO. Meanwhile, NXMH will retain ownership of Whitebridge Pet Brands' European business and brand portfolio.

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GIS’ Strategic Moves in the Pet Category

The addition of Tiki Pets and Cloud Star brands complements General Mills' Blue Buffalo portfolio, further enhancing its position in the Cat feeding and Treats space.  The latest acquisition move not only complements the Blue Buffalo portfolio but also marks the fifth major addition to its pet product lineup since 2018. Since entering the pet food market with the Blue Buffalo acquisition in 2018, General Mills has steadily expanded its portfolio. Additions like Nudges, Top Chews and True Chews in 2021; Fera Pets in 2023; Edgard & Cooper in 2024; and now Whitebridge’s North American business illustrate GIS’ clear focus on pet products.

As the pet food category continues to grow, the latest buyout move underscores General Mills’ commitment to maintaining a leading role in one of the fastest-growing consumer markets.

What Else Should You Know About GIS?

The Zacks Rank #3 (Hold) company’s robust portfolio of well-established brands and continued efforts to strengthen and evolve its product offerings have fortified its position as a global leader in the packaged food industry. The emphasis on innovation and brand marketing has been helping the company strengthen its product portfolio. Key brands hold strong market shares and consumer loyalty across baked goods, pizza and Mexican food categories.

The company’s Holistic Margin Management strategy has helped protect margins amid ongoing cost pressures by reducing supply-chain costs and enhancing efficiency. However, the impact of macroeconomic uncertainties on consumer behavior with economic instability in regions like China, presents headwinds. Apart from this, input cost inflation is likely to affect margins in fiscal 2025.

The company’s shares have lost 6.2% in the past three months compared with the industry’s decline of 3.3%.

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