Betting that dog and cat cuisines offer it a brighter future than potato chips, Dalgety PLC will pay $700 million for the European pet food business of Quaker Oats Co.
This will make Dalgety the No. 2 pet food company in Europe, after the U.S. giant Mars, in a market now worth $7.8 billion a year and growing.
Dalgety will acquire two important brands, Felix cat foods and Fido dog foods, and combine them with its Spillers Foods business, which sells cuisine for European pets.
Quaker Oats’ decision to sell its European pet foods is based on a similar strategy. Chairman William D. Smithburg called the deal “an important step in the evolving realignment of Quaker’s portfolio,” which will emphasize sales of grain-based products and “good-for-you” beverages.