General Mills Inc (GIS.N) said on Friday it would buy Tyson Foods Inc’s (TSN.N) pet treats business for $1.2 billion in cash, as the cereal maker builds its pet food portfolio.
The deal would add Nudges, Top Chews and True Chews brands to General Mills’ portfolio that already includes Blue Buffalo pet foods label.
Tyson Foods’ pet treats portfolio generated more than $240 million in net sales in the 12 months ended April 3.
As part of the deal, which would be funded with cash on hand and short-term borrowing, General Mills would also acquire a manufacturing facility in Independence, Iowa.
The deal is one of General Mills’ biggest after it bought Blue Buffalo for a bumper $8 billion in 2018, making its first bet on the fast-growing pet foods segment.