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General Mills announced today that it is expanding its pet food business with the $1.45 billion acquisition of Whitebridge Pet Brands’ North American premium cat food and pet treats business. The cereal giant will acquire the brand from NXMH, which will retain Whitebridge’s European brands.
Jon Nudi, group president of General Mills’ pet division, said the acquisition will strengthen the company’s position in the pet sector. Whitebridge’s pet business generated $325 million in U.S. sales last year, the company said.
“These brands complement our Blue Buffalo portfolio and will help us grow incrementally in the cat food and treats category,” said Nudi. “We are excited to welcome the North American Whitebridge team to General Mills and provide pet parents with an expanded portfolio of brands to feed and treat their pets like family.”
The portfolio of brands that are part of the Whitebridge purchase includes Tiki Pets and Cloud Star. General Mills will finance the purchase with cash on hand and new debt, and expects the purchase to pass regulatory approval in the third quarter of 2025.
TD Cowen analyst Robert Moskow said in a note to investors that the acquisition shows how General Mills thinks about its position in the pet food space.
“The Blue (Buffalo) brand doesn’t have as much cachet in cat food as it does in dog food, and the company’s attempts to expand deeper into pet treats through acquisitions have fallen short of expectations,” Moskow said. “The primary purpose of the acquisition is to gain a foothold in the high-growth premium wet cat food supply segment in markets in which General Mills does not currently participate.”
General Mills’ recent acquisition follows four other major pet food purchases the company has made, most notably Blue Buffalo, which it purchased for $8 billion in 2018. Ahead of 2024, the Cheerios maker has revamped its top management team to aggressively accelerate its pet segment.
The overall U.S. pet food category is expected to generate approximately $60 billion in sales this year. politician It is expected to increase at a compound annual growth rate of 5.2% until 2029.
Cereal producers are also diversifying their revenue streams as they work to combat a prolonged period of declining sales of breakfast foods. Post Holdings, which produces Cocoa Pebbles and Honey Bunches of Oats, entered the pet food sector last year with two rounds of sales totaling $1.2 billion and $235 million, respectively. You’ve made a major purchase.
