Mars Inc., the closely held maker of M&M’s candies and Uncle Ben’s rice, agreed to buy three of Procter & Gamble Co.’s (PG) pet-food brands for $2.9 billion, making it a bigger challenger to Nestle SA’s Purina empire.

The transaction, which excludes the brands’ businesses in some markets, mainly in Europe, will be completed in the second half of the year, the companies said.

The acquisition gives McLean, Virginia-based Mars the Iams, Eukanuba and Natura brands to add to its Pedigree, Whiskas and Royal Canin lines.

P&G will restate fiscal 2013 and 2014 earnings by 3 cents to 4 cents from core earnings to discontinued operations. The sale won’t affect P&G’s forecast for profit growth in its fiscal 2014, which runs through June, and won’t have a material effect on fiscal 2015 results. Cash from the sale will be used for general corporate purposes, the company said.

Source: www.esmmagazine.com