General Mills to pay $8 billion to acquire Blue Buffalo pet foods

US food conglomerate General Mills is adding dogs and cats to its portfolio, in an $8 billion deal to acquire natural pet food company Blue Buffalo, the companies announced Friday. The Minnesota-based maker of Cheerios cereal, Yoplait yogurt and home of the Pillsbury Doughboy, said the acquisition gives the company a way into a growing $30 billion market for pet food. Founded in 2002 in Connecticut, Blue Buffalo has seen double-digit sales growth of its natural products in each of the last three years with $1.3 billion in sales last year.
"The addition of BLUE to our family of well-loved brands provides General Mills with the leading position in the large and growing Wholesome Natural pet food category," General Mills Chairman Jeff Harmening said in a statement.