Heinz To Pay $725 Million For Quaker's Pet Food Units

PITTSBURGH - H.J. Heinz Co. said today it will buy Quaker Oats Co.'s U.S. and Canadian pet food operations for $725 million, a move that will double its share of the lucrative pet-food market.

The acquired businesses will complement Heinz' canned cat food operations and make the company the nation's second-largest seller of dry dog food behind market leader Ralston Purina Co.

Heinz makes 9-Lives and Amore cat food, Reward and Skippy canned dog food and Meaty Bone dog snacks. The Quaker division makes dog foods including Cycle, Gravy Train and Ken-L Ration.

Nearly 65 percent of Quaker's U.S. pet food sales are in the growing dry dog food segment, which accounts for about one-third of the nation's $8 billion-a-year pet food market.

The deal announced today will lift Heinz's share of the overall U.S. market to 14 percent from about 7 percent.