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BLUE BUFFALO PET PRODUCTS

Acquired by

GENERAL MILLS

UNITED STATES Food Processing EV [1b USD - 100b USD] 04/2018

Target

BLUE BUFFALO PET PRODUCTS

Acquirer

GENERAL MILLS

Context

General Mills acquired Blue Buffalo for $40.00 per share in an all-cash transaction, representing an Enterprise Value of $8.0 billion. The deal represents a significant portfolio reshape for General Mills, pivoting towards the high-growth "Wholesome Natural" pet food sector. Blue Buffalo will operate as a standalone operating segment led by its management team. The transaction was financed through a combination of debt, cash, and equity. The purchase price represents a premium of 23% to the 60-day VWAP.

BLUE BUFFALO PET PRODUCTS, which reported an EBITDA margin of LOGIN in 2017, is valued in this transaction at an EV/EBITDA multiple of LOGIN, a level around LOGIN higher than the 10.1x average currently observed in the AgriFood sector.

Note that this data is based on contribution from our growing community, composed of M&A and Private Equity professionals, and has been verified by our team to ensure its accuracy.

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Target

Founded in 2002 by the Bishop family, Blue Buffalo is the pioneer and market leader in the "Wholesome Natural" pet food segment in the US. The brand distinguishes itself by using high-quality natural ingredients (real meat, fruit, vegetables) and excluding by-product meals, corn, wheat, soy, or artificial flavors. At the time of the deal, it was the fastest-growing major pet food company in the US, selling through pet specialty stores (PetSmart, Petco) and increasingly through e-commerce and mass retail. In 2017, it generated $1.275 billion in Net Sales.

Ent. Value

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Equity Value

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Multiples Analysis

EV / Revenue

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EV / EBITDA

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EV / EBIT

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Historical Financials (EUR)

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2017
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2016
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Other operations with BLUE BUFFALO PET PRODUCTS

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