Talk of acquisitions is swirling in the specialty sector, and General Mills is one of the latest names to appear on our radar. The provider has entered a definitive agreement to acquire a manufacturer of frozen pizza crusts, TNT Crust, which is a portfolio company of Peak Rock Capital.
“This acquisition advances our Accelerate strategy and builds on our strong position in the fast-growing away-from-home frozen baked goods category,” said Shawn O’Grady, Group President of North America Foodservice. “We have clear competitive advantages in Foodservice with our strategic customer partnerships, best-in-class supply chain, and operator-first innovation capabilities. By adding the high-growth TNT Crust business to our frozen baked goods platform, we are adding to our scale in a category that is on trend with consumers and poised for continued rapid growth.”
The products made by TNT Crust are highly complementary to General Mills’ existing frozen baked goods portfolio, according to a press release. Its differentiated products and strong relationships with key foodservice distributors and pizza chain operators have driven double-digit compound annual net sales growth over the past four years, with net sales totaling approximately $100 million in 2021.
General Mills will also be acquiring two manufacturing facilities in Green Bay, Wisconsin, and one manufacturing facility in St. Charles, Missouri, as part of the deal. The company intends to fund the acquisition with cash on hand and short-term borrowings, and the transaction is expected to close in the first quarter of fiscal 2023.
Jones Day is serving as legal adviser to General Mills for the transaction, while Evercore is advising TNT Crust and Goldman Sachs & Co. LLC is co-advising. Kirkland & Ellis is serving as TNT Crust’s legal adviser.
Keep a tab open for Deli Market News as we continue to report on the industry’s latest acquisitions.