Middleton-based Spectrum Brands Holdings announced Tuesday it has acquired two pet food brands in Europe from Procter & Gamble, expanding its scope in the pet products industry.
The acquisition of the Iams and Eukanuba brands will give Spectrum entry into the $21 billion European dog and cat food market, Spectrum said in a news release.
The deal with Procter & Gamble is expected to close in 2015. Terms were not disclosed.
The two brands in Europe were the last parts of Procter & Gamble's pet care business, according to the Associated Press. The majority of the business was sold in April to Mars Inc., AP said.
Spectrum entered the pet product business when it acquired United Pet Group, a major maker of aquatic pets supplies.
"This acquisition will expand and further strengthen our United Pet Group's broad companion animal product portfolio and help to achieve our objective for more balance between our two products segments of aquatic and companion animals," said Spectrum president and CEO Dave Lumley in the release. "We are adding complementary brands in an adjacent category to expand our global pet business."
The European Iams and Eukanuba brands has about $200 million in annual sales, the Associated Press reported. P&G said that exiting the pet care business will help it focus on its core businesses.
United Pet Group had $621 million in net sales in 2013 and Spectrum had $4.1 billion in net sales in 2013, the release said.
Spectrum Brands includes Rayovac batteries and Remington shavers, plus garden and pet supply products, door locks and small appliances such as George Foreman grills.
The company reported earnings of $78 million on sales of $1.13 billion for the third quarter of 2014, up from profits of $36.1 million on sales of $1.1 billion for the same period of last year.
It was the second acquisition in as many weeks for Spectrum. Last week, Spectrum announced it made a deal to buy Tell Manufacturing, a maker and distributor of commercial doors, locks and hardware based in Lancaster, Pennsylvania.
That transaction, involving an undisclosed cash sum, was expected to close by the end of October.
Spectrum's deal with P&G is targeted to close next year.