Post Holdings Inc. POST, -0.87% said late Wednesday it has agreed to buy some pet-food brands from J.M. Smucker Co. SJM, -0.74% for $1.2 billion. The deal includes “leading” dog and cat food brands such as 9Lives and Kibbles ‘n Bits that generated sales of $1.4 billion in the year ended April 30 as well as manufacturing and distribution plants, Post said. “The acquisition will provide Post with a compelling entry point into the attractive and growing pet food category,” the company said. “Post management expects there to be additional opportunities for future investments in the pet food category.” The deal is expected to close in the second quarter, Post said. Post is slated to pay $700 million in cash and issue Smucker about $500 million in Post shares. For Smucker, the sale “supports our strategy to prioritize investments and resources in the areas of our business that offer the strongest growth and profit potential,” Chief Executive Mark Smucker said in a statement. “In our pet business this is reflected in our focus on dog snacks and cat food, anchored by our Milk-Bone and Meow Mix brands,” Smucker said.
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