MINNEAPOLIS (AP) – General Mills is buying Blue Buffalo Pet Products Inc. in a deal valued at about $8 billion.

General Mills Inc. will pay $40 per Blue Buffalo share. That’s a 17 percent premium to the pet food company’s Thursday closing price of $34.12.

Shares of Blue Buffalo surged more than 5 percent in Friday premarket trading.

Blue Buffalo makes natural foods and treats for dogs and cats. Its Blue brand had approximately $1.28 billion in net sales in fiscal 2017.

Minneapolis-based General Mills said once the transaction closes, Blue Buffalo will be run as a new pet operating segment.

Blue Buffalo is expected to keep its Wilton, Connecticut headquarters.

The deal is targeted to close by the end of General Mills’ fiscal year 2018.

Copyright 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


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