In a statement, the two companies said Mars would buy Iams, Eukanuba and Natura brands in major markets for $2.9 billion in an all-cash deal. The brands will join Mars' current portfolio including Pedigree, Whiskas and Royal Canin.
Geographic regions included in the acquisition include North America and Latin America, as well as an option for Mars to acquire additional markets. Markets not included are primarily European Union countries, regions Procter & Gamble is currently considering how to unload.
The deal is expected to close in the second half of 2014, subject to regulatory approval.
"Exiting Pet Care is an important step in our strategy to focus P&G's portfolio on the core businesses where we can create the most value for consumers and shareowners. The transaction creates value for P&G shareowners, and we are confident that the business will thrive at Mars, a leading company in pet care," P&G president and CEO of A.G. Lafley said in a statement.
The Cincinnati, Ohio-based business will begin reporting its petcare business as discontinued operations in its June-ending quarter.
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TheStreet Ratings team rates PROCTER & GAMBLE CO as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation: