Nestlé in talks to acquire Champion Petfoods for over $2.6bn
According to the Wall Street Journal, Nestlé is reportedly in talks to acquire Edmonton-based firm Champion Petfoods in a deal that could be worth more than CAD$2.6bn.
Citing sources familiar with the matter, the WSJ speculates that Nestlé is looking to purchase a majority stake in the Canadian firm. However, there is no guarantee that a deal will be reached between the companies.
If an acquisition does come to fruition, Nestlé will take on Champion Petfoods’ 400,000 square foot production plant located in the Parkland County Acheson Industrial Park, announced in 2017 and expected to cost more than $200mn to build.
This site alone would provide the US firm with a key facility from which to significantly expand both its operations within both the petfoods industry and its presence in the Canadian market.
Nestlé, considered to be the world’s largest food company with more than USD$90bn in revenues, currently owns Purina - one of the world’s largest petfood brands that accounts for USD$11.2bn of this annually.