WILTON: A Connecticut startup and success story Blue Buffalo Pet Foods [NASDAQ:BUFF] is reportedly being sold to General Mills [NYSE: GIS]to buy pet food maker Blue Buffalo for $8 billion in a cash transaction
Headquartered in Wilton the company founded in 2002 has 1,700 employees primarily in manufacturing in plants in Indiana and Missouri.
The company reported said 4th quarter profit of $53.6 million, 27 cents per share, earnings, adjusted for pretax gains and non-recurring gains, came to 24 cents per share and revenue of $337 million in the period, which also topped Street forecasts.
For the year, the company reported profit of $193.5 million, or 97 cents per share. Revenue was reported as $1.27 billion.
The company sells its products to retail partners and distributors in specialty channels, including national pet superstore chains, regional pet store chains, neighborhood pet stores, farm and feed stores, ecommerce retailers, military outlets, hardware stores, and veterinary clinics and hospitals.
General Mills' offer price of $40 per Blue Buffalo share represents a premium of 17.2 percent to Blue Buffalo's Thursday closing price.
In 2017, consumers reportedly spent $20 billion on pet care, $10 billion on dog food.