Wall Street is Howling
Pet Food Company Blue Buffalo is Being Acquired by General Mills ( (GIS - Get Report) ) for $7.9 Billion. Wall Street responded quickly and Blue Buffalo's shares began surging while General Mills shares dropped. The breakfast cereal manufacturer will pay $40 per Blue Buffalo share. The company anticipates the deal will close by the end of 2018.
Blue Buffalo sells a wide variety of pet food products, including veterinary diet goods. Pet food and care continues to grow in the consumer industry, just look at the 58 percent rise in Blue Buffalo's stock in the past six months. According to Nielsen, $20 billion was spent on pet care in 2017, with $10 billion of that sum spent on dog food.
The M&A news in the pet care industry is just the latest in a string of major acquisitions in the space today.
Last January, Mars, the candy company that also owns a large number of popular pet food brands, announced that it was buying veterinary clinic owner VCA Inc. in a deal worth $7.7 billion.
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