BLUE BUFFALO PET PRODUCTS acquired by 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 [members only] in 2017, is valued in this transaction at an EV/EBITDA multiple of Above 20x, a level significantly higher than the average currently observed in the AgriFood sector (11.0x).
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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
$1–10bn
Equity Value
[members only]
Multiples
EV / Revenue
4x–10x
EV / EBITDA
Above 20x
EV / EBIT
[members only]
Historical Financials (USD)
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Other operations with GENERAL MILLS
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|---|---|---|---|---|
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REFERENCES
Valuation range: EV $1–10bn
Revenue range: $1–10bn
EBITDA range: $250–500M
EV/Revenue range: 4x - 10x
EV/EBITDA range: Above 20x
Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of BLUE BUFFALO PET PRODUCTS by GENERAL MILLS are reserved for mynth community members. Register for free to unlock full data.
Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.