Blue Buffalo markets its products under the Blue brand. In its most recent year the company generated $1.3 billion in sales and $319 million in adjusted EBITDA, according to General Mills.
|Jeffrey Harmening, chairman and CEO of General Mills
“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 Jeffrey L. Harmening, chairman and CEO of General Mills. “We are competing more effectively in our existing categories by really listening to consumers and providing a variety of options that meet their needs.
“In pet food, as in human food, consumers are seeking more natural and premium products and we have tremendous respect for how attentive Blue Buffalo has been to the needs of their consumers, pet parents and pets, as they have built their brand.”
Once completed, the acquisition is expected to be immediately accretive to General Mills’ sales growth and operating margin profile. It is expected to be neutral to earnings per share in fiscal 2019 and accretive in fiscal 2020.
The transaction has been approved by the boards of directors of both companies. It is contingent on regulatory approvals and other closing conditions.