Mars Inc is buying pet hospital operator VCA Inc for $7.7 billion in a deal that will tighten the Whiskas and Pedigree pet food maker's grip on the pet care market. The deal will help privately held Mars, better known for candies such as M&M's and Snickers, add about 800 pet hospitals to its network of more than 900 clinics, which includes the 61-year-old Banfield pet hospital chain.
The combination of Mars Petcare and VCA will dominate the veterinary care industry in the United States, grabbing an even bigger share of the nearly $4 billion global pet care market. McLean, Virginia-based Mars is already the biggest pet food company in the world - it held a quarter of the global pet food market as of 2015 - followed by Nestle SA, the maker of the Purina cat and dog food brand. Mars has been diversifying its business as calorie-conscious consumers increasingly shun chocolates and candies, a trend that has weighed on the $183 billion global confectionery market.
Comments
Comments are closed for this article.