Jeffreys pet foods has announced a $1 billion sale to Jeffrey’s Pets for the retail business of its pet food business, which includes PetFoodCo.
The deal was announced Wednesday, marking the company’s fourth round of capital investment since Jeffreys was acquired by Jeffreys Pets in March 2019.
The deal includes an option for Jeffreys to buy the pet food company for $2.5 billion.
Jeffreys said the deal is expected to close in the first quarter of 2019.
The pet food market has been the target of a number of food companies looking to exit it.
The merger has been a boon for the pet-food industry, which has been hurt by a lack of options in recent years.
It has helped the company bring in millions of dollars in revenue per year, but also has left a vacuum in the market where competitors have been able to emerge.
Jeffrey’s Pet Food, which sells pet food to pet food manufacturers, including PetFood, Petco and Petco Petcare, had been trying to build a bigger presence in the petfood market.
In 2019, Jeffreys bought the pet store chain L’Oreal.
The Pet Food business is the second largest market for PetCo Petcare in the US.
It had a net loss of $3.8 million in the fiscal year that ended Sept. 30, according to data from IHS Global Insight.
The company’s business has seen a lot of growth in the past five years, but Jeffreys has struggled to gain a foothold in the food sector.
Its business lost $8 million on sales of $34.5 million during the same period.
It said it plans to restructure its business in order to improve its position.