General Mills offloads yoghurt operations in $2.1bn deal
Updated : 15:58
US food manufacturer General Mills has announced the split-up and sale of its North American yoghurt business to French dairy companies in a $2.1bn deal.
Under the terms of the transaction, Lactalis, the biggest dairy products group in the world will take over the US businesses, while Sodiaal will buy the Canadian operation.
General Mills is selling off several yogurt brands including Yoplait, Liberté, Go-Gurt, Oui, Mountain High, and :ratio, which together generated $1.5bn in sales in its latest financial year.
The disposal also includes manufacturing facilities in Tennessee, Michigan and Québec.
“Today’s announcement represents another significant step forward for General Mills in advancing our Accelerate strategy and our portfolio reshaping ambitions,” said General Mills chairman and chief executive Jeff Harmening.
Harmening said, once completed, the deal will mean General Mills will have turned over nearly 30% of its net sales base since 2018.
"By efficiently managing our portfolio and sharpening our focus on our global platforms and local gem brands that have stronger growth prospects and more attractive margins, we will be in a better position to drive top-tier shareholder returns over the long term.”
General Mills shares were down 1.1% at $72.34 by 1057 in New York.