To Slim Down, Procter & Gamble Sells Most of Its Pet Food Brands to Mars
Since A. G. Lafley returned last year for a second stint as chief executive of Procter & Gamble, investors have been waiting for him to make a big move. On Wednesday, they got a small but significant first step.
Mr. Lafley was brought in after Robert A. McDonald, his successor, and now predecessor, was ousted by a board under pressure from the activist investor William A. Ackman.
Mr. Ackman, who controls the hedge fund Pershing Square Capital Management, had called for Procter & Gamble to shed some of its many consumer brands — those include Gillette, Pampers and Crest — and said Mr. McDonald was not up to the task of streamlining the company.
Mr. Lafley set about addressing Mr. Ackman’s criticisms on Wednesday, agreeing to sell most of Procter & Gamble’s pet foods brands — including Iams and Eukanuba — to Mars, best known as a candy maker, for $2.9 billion in cash. The New York Times – Read more…