Procter & Gamble (NYSE:PG) is exiting the pet food business. The consumer goods giant announced recently that it's selling its three global pet brands, including Iams, to privately held Mars. And it's getting paid nearly $3 billion for its kibble.

In the video below, Fool contributor Demitrios Kalogeropoulos talks about the details of the sale, noting that Mars already owns the two top-selling pet food names in the world: Wiskas and Pedigree. The deal also makes sense for P&G, as it allows the company to focus more on its core consumer brands, like Tide detergent and Bounty paper towels.

As for what Procter & Gamble should do with the extra cash, Demitrios argues that it might boost investments in product development, but more likely will increase its share-repurchase spending. Either way, P&G investors shouldn't be worried about the sale, as it won't be a drag on earnings.