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Meow Mix Sold to Del Monte Foods for 705 million
Listen to this articleThe Secaucus-based cat food company is reported to have the second-largest share of the $2.5 billion market for dry cat food.Del Monte Foods (NYSE: DLM) of San Francisco today said that its subsidiary, Del Monte Corp., has agreed to buy the privately held Meow Mix Holdings in Secaucus for about $705 million. Meow Mix, with 2005 revenues of about $250 million, is reported to have the second-largest share of the $2.5 billion market for dry cat food. While that market is expanding at an annual pace of 4%, Meow Mix has averaged 10% growth in the past three years.
The deal includes tax benefits of about $23 million that Del Monte expects to record with the acquisition.
ÂWe see great opportunities to continue to expand the Meow Mix brand equity to the premium wet cat and cat snack segments, said Richard G. Wolford, Del Monte”s chairman and CEO. Meow Mix varieties include Original Choice, Seafood Middles and Hairball Control Formula. Meow Mix also manufactures and markets the Alley Cat brand of dry cat food.
With this deal, Del Monte says it will have Âa billion-dollar pet food business with an improved platform for innovation, as well as greater revenue growth potential and higher overall margins. Company shares gained $0.12 to $11.02 this afternoon.
