Gileady Sciences, which makes Gileadex, a popular cat food for dogs, has agreed to sell more than half its pet foods and treats to private-equity firm CadavaSciences, according to a person familiar with the deal.
The person, who asked not to be identified because the agreement was private, said the deal is in the works and the final deal is not expected to be announced until later this year.
The deal will be the latest in a string of acquisitions by Gileads for pet food products over the past decade.
Gilead has struggled with rising costs and a growing number of pet owners who are fed dog foods with antibiotics that are unsafe.
The company said last year that it is on track to reduce the cost of pet food by up to 50 percent.
The deal with Cadava is part of a larger agreement in which the company will sell some pet food and treats under its brand name.
Cadava also plans to sell pet food in its pet-food distribution centers.
The sale of the pet food division comes at a time of renewed interest in pet food as more and more people start to realize the dangers of antibiotics in dogs and cats.
Gilliam, the pet-care company, announced last year it was considering selling pet food, including its own pet-supplemented products, to a new company that would focus on cat and dog food.
The companies’ stock, which traded above $13 a share, was up $7.10 in after-hours trading.
Gilesa, which is based in Chicago, is a maker of pet-health products for pet owners.