who owns nudges dog treats
Transaction includes Nudges, True Chews and Top Chews brands
Springdale, Ark. May 14, 2021 Tyson Foods, Inc. (NYSE: TSN) is selling its successful pet treats business to General Mills, Inc. (NYSE: GIS) for approximately $1.2 billion, the company announced today.
The sale of the business, a leading player in natural pet treats, is expected to be completed by the end of the companys 2021 fiscal year, subject to regulatory approval and other customary closing conditions. It includes the Nudges, True Chews and Top Chews brands, as well as a production facility in Independence, Iowa. Tyson Foods will continue to provide meat ingredients for the pet treats business after General Mills assumes ownership.
Were proud of the tremendous success of this business and the diligent work by our team to meet growing demand for high quality pet treats, said Noelle OMara, group president of Prepared Foods for Tyson Foods. We believe the time is right to transition these great brands to an established pet foods business where they will complement their existing portfolio.
Sales generated by Tysons pet treat business totaled more than $240 million in the 12 months ended April 3, 2021. The market fundamentals are currently strong in the $35 billion pet food industry, which has witnessed an increase in pet ownership during the pandemic.
Tyson Foods pet treats business and the approximately 300 team members involved in it will become part of General Mills after the sale is completed.
Tyson Foods entered the pet treat market with the launch of True Chews dog treats in 2010. It expanded to include the Nudges brand in 2011 and Top Chews in 2012. The brands offer natural treats that are made in the USA.
BofA Securities is acting as lead financial advisor and Siebert Williams Shank & Co. is acting as financial advisor to Tyson Foods on this transaction.
Forward-Looking Statements
Certain information in this press release constitutes forward-looking statements as contemplated by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include statements relating to the companys expectations regarding the benefits and expected timing of completion of the transaction. We caution readers not to place undue reliance on any forward-looking statements, which speak only as of the date made. These forward-looking statements are subject to a number of factors and uncertainties that could cause our actual results to differ materially from those expressed in or contemplated by the forward-looking statements, including the effect of global economic conditions, the timing of regulatory approvals and the ability of the parties to consummate the transaction. Other important factors are discussed in detail in the companys filings with the Securities and Exchange Commission, including in Part I, Item 1A. Risk Factors included in our Annual Report on Form 10-K for the fiscal year ended October 3, 2020. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
About Tyson Foods, Inc.
Tyson Foods, Inc. (NYSE: TSN) is one of the worlds largest food companies and a recognized leader in protein. Founded in 1935 by John W. Tyson and grown under three generations of family leadership, the company has a broad portfolio of products and brands like Tyson, Jimmy Dean, Hillshire Farm, Ball Park, Wright, Aidells, ibp, and State Fair. Tyson Foods innovates continually to make protein more sustainable, tailor food for everywhere its available and raise the worlds expectations for how much good food can do. Headquartered in Springdale, Arkansas, the company has 139,000 team members. Through its Core Values, Tyson Foods strives to operate with integrity, create value for its shareholders, customers, communities and team members and serve as a steward of the animals, land and environment entrusted to it. Visit TYSONFOODS.COM to learn more.
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Media Contact: Gary Mickelson, 479-236-9022
Newsroom: IR
LEGAL NEWSLINE
SACRAMENTO, Calif.(Legal Newsline) Tyson pet treats accurately include "Made in the USA" on their labels, a company spokespersonrecently said in response toa federalclass action lawsuit filed earlier this month that says otherwise.
"We disagree with this lawsuit and will fight it," Tyson Foods Senior Director of Public Relations Gary Mickelson saidin a statement to Legal Newsline. "Our pet treats are made with meat and poultry produced right here in the United States.
"We meet all pet food safety rules and regulations of the Food & Drug Administration (FDA) and Association of American Feed Control Officials (AAFCO). We are proud of our products, and believe that labeling them as Made in the USA is entirely consistent with applicable law."
The allegations that are part of a class action lawsuit filed Jan. 11 by Susan Fitzpatrick of Placer County in the Sacramento Division of the U.S. District Court for the Eastern District of California say Tyson labels certain pet treat products as made in the U.S. but should not, because some of the product components are sourced from outside the country.
Specifically, the lawsuit claims Tyson pet treat ingredients include tapioca and vitamin, mineral and amino acid packs that are produced outside the United States. For this reason, the lawsuit claims, Tyson should not include "Made in the USA" on its pet treat labels.
Doing so, the lawsuit claims, violates California's Unfair Competition Law and Consumer Legal Remedies Act.
Tyson pet products and information about them, listed on the company's website, include:
- True Chews, dog chews and treats "made with 100%-natural ingredients" and "100% American Farm-Raised Chicken," are the "Official Treat Sponsor of the United States War Dogs Association";
- Nudges, dog treats are "packed with protein and made in the USA" from "Real American Chicken"; and
- Top Chews, chicken jerky for dogs, are "made with 100% natural ingredients in the USA" from "Real American chicken" and sold only in Costco Wholesale stores.
The lawsuit doesn't target specific Tyson pet products that allegedly don't deserve to be labeled "Made in the USA." The lawsuit does refer to Nudges as the product Fitzpatrick purchased over "multiple occasions" from a Walmart in Roseville, Calif. Fitzpatrick purchased Nudges in "various flavors, including 'Chicken Grillers,'" the lawsuit said.
The lawsuit also refers to the pet food recall scandals of 2007, when pet food made from ingredients sourced in China and laced with toxic chemicals, were linked to renal failure and other illnesses in cats and dogs. At the time, Tyson Foods was among a number of large companies that produce pet food products that publicly announced a determination not to use ingredients sourced in China.
The scandal led to the buying publics preference for pet foods and treats that are made exclusively in the United States," the lawsuit said.
"For this and other reasons, the buying public generally believes that 'Made in the U.S.A.' products are safer to feed their animals than foreign sourced ingredients," the lawsuit said.
The Tyson class action lawsuit is very similar to another class action lawsuit that Fitzpatrick filed in the same court on the same day. The other case lists as defendants Milo's Kitchen manufacturers Big Heart Pet Brands and J.M. Smucker Co.
As in the Tyson class action case, the Big Heart Pet Brands and Smucker's lawsuit disputes label claims that the dog and cat treats are made in the United States because at least some of the ingredients allegedly are sourced outside the country.
Also at the heart of these allegations is how much of any product must be entirely made in the United States before "Made in the USA" may be included on its label.
Only automobile, textile, wool, and fur product manufacturers are required to disclose U.S. origin content, according to information from the Federal Trade Commission's website. "Theres no law that requires most other products sold in the U.S. to be marked or labeled Made in USA or have any other disclosure about their amount of U.S. content," says the FTC's website.
The FTC is the government commission that works to prevent deception and unfairness in the marketplace.
However, other manufacturers that choose to make these claims must also comply with the FTCs "Made in USA" policy. Those policies include how much and many of a product's components may be produced outside the U.S., but assembled in the country, and still bear the "Made in the USA" label.
Plaintiffs in the Tyson case are seeking more than $5 million in monetary relief, actual and punitive damages, interests, attorney fees and other costs.
John E. Norris of Davis & Norris in Birmingham, Ala., and Benjamin P. Tryk of Tryk Law in Fresno, Calif.,are the attorneys representing plaintiffs in both cases.
Updated: General Mills completes Tyson pet treats acquisition
MINNEAPOLIS General Mills announced July 6 it has successfully completed its acquisition of Tyson Foods pet treat business, which includes its Nudges, Top Chews and True Chews brands. The transaction totaled $1.2 billion and was paid in cash.
This acquisition represents an important step as we reshape our portfolio for growth, in line with our Accelerate strategy, said Jeff Harmening, chairman and chief executive officer of General Mills. This business is a wonderful complement to our BLUE pet food portfolio, and we see a long runway of strong, profitable growth ahead for our combined pet food business.
General Mills first announced plans to acquire Tyson Foods, Inc.s pet products business in mid-May. for $1.2 billion. The company has also acquired a manufacturing plant in Independence, Iowa, as part of the deal.
Tyson Pet Products had sales of more than $240 million during the 12 months ended April 3, according to the company. General Mills said the transaction will provide an estimated tax benefit of $225 million, equating to an effective purchase price of $975 million.
Were proud of the tremendous success of this business and the diligent work by our team to meet growing demand for high quality pet treats, said Noelle OMara, group president of prepared foods at Tyson Foods. We believe the time is right to transition these great brands to an established pet foods business where they will complement their existing portfolio.
Tyson stated it will continue to supply meat ingredients for True Chews, Nudges and Top Chews pet treats, now under General Mills ownership.
General Mills entered the pet food category in April 2018 when it acquired Blue Buffalo Pet Products, Inc. for approximately $8 billion.
Pet food is a high-growth category, fueled by the humanization of pets, a trend that has only increased during the pandemic, said Bethany Quam, group president of General Mills pet segment. By adding these trusted pet treat products to our portfolio, we are strengthening our position in this attractive category.
This acquisition is highly complementary to our existing business, combining Blues leading position in natural pet food with Nudges, Top Chews, and True Chews strong portfolio of natural meat treats for pets.
Tyson Foods, Springdale, Ark., entered the pet treat market with the launch of True Chews in 2010. It expanded to include the Nudges brand in 2011 and Top Chews in 2012. The business employs approximately 300 people.
In May 2021, the Nudges brand released two new products: a long-lasting jerky bone chew and natural beef jerky treats for small-breed dogs.
General Mills said the transaction is expected to be modestly accretive to its earnings in the first 12 months following completion.
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