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General Mills, Inc. has finalized agreements to sell its North American Yogurt business to Lactalis and Sodiaal, two prominent French dairy companies, in cash deals totaling $2.1 billion. Once the transactions are complete, the US and Canadian branches will operate independently, with Lactalis taking over the US business and Sodiaal acquiring the Canadian business. These transactions are expected to be completed by calendar year 2025, pending regulatory approvals and other standard closing conditions.
The divestitures include the US and Canada operations of several yogurt brands such as Yoplait, Liberté, Go-Gurt, Oui, Mountain High, and :ratio, along with production facilities in Murfreesboro, Tenn., Reed City, Mich., and Saint-Hyacinthe, Québec. Together, the North American Yogurt business contributed approximately $1.5 billion USD to General Mills’ fiscal 2024 net sales.
General Mills chairman and CEO Jeff Harmening stated, “This announcement marks a significant milestone for General Mills in advancing our Accelerate strategy and portfolio reshaping goals. By efficiently managing our portfolio and focusing on our global platforms and high-potential local gem brands, we aim to deliver top-tier shareholder returns in the long run.”
“We want to express our gratitude to our North American Yogurt team members for their valuable contributions,” Harmening added. “We believe that Lactalis and Sodiaal are the right owners for these businesses, with their dairy expertise to drive success for our employees and growth for these brands in the future.”
General Mills expects the combined transactions to have a 3% dilutive effect on adjusted earnings per share in the first year following the close, excluding one-time impacts and transaction costs. The company plans to use the net proceeds for share repurchases.
More details on the financial impact of the transactions will be provided when General Mills reports first-quarter results on Sept. 18, 2024.
J.P. Morgan served as the exclusive financial adviser for General Mills in these transactions, with Cleary Gottlieb Steen & Hamilton LLP serving as legal counsel.
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Emil Kovács graduated from the Journalism program at Eötvös Loránd University in Hungary. During his journalism studies, he focused on data journalism, investigative reporting, and multimedia storytelling. He gained experience by writing for the university’s student newspaper, where he gained attention for his articles on social issues. After graduation, Emil began working as a reporter at a European news agency, where he conducts in-depth analyses of international news and current events.
