General Mills’ latest operational strategy is ringing in at $2.1 billion, as the specialty behemoth enters definitive agreements to sell its North American Yogurt business to Lactalis and Sodiaal. The two distinguished French dairy companies are set to purchase the business in cash transactions valued at an aggregate $2.1 billion USD.
“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 Officer Jeff Harmening. “Upon completion of these divestitures, we will have turned over nearly 30 percent of our net sales base since fiscal 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.”
The proposed transactions are expected to close in calendar 2025, subject to receipt of requisite regulatory approvals and other customary closing conditions. Following the completion of both deals, the United States and Canadian businesses will operate independently, with Lactalis acquiring the U.S. business and Sodiaal acquiring the Canadian business, a press release explained.
Collectively, General Mills’ North American Yogurt business contributed approximately $1.5 billion to the company’s fiscal 2024 net sales.
“We would also like to take this time to thank our North American Yogurt team members for their significant contributions,” Harmening continued. “In Lactalis and Sodiaal, we believe we’ve found the right homes for these businesses, with dairy-focused owners who are well equipped to drive success for our people and growth for these brands into the future.”
The divestitures span both the U.S. and Canada operations of several prominent yogurt brands like Yoplait, Liberté, Go-Gurt, Oui, Mountain High, and :ratio. In addition, the deals also include manufacturing facilities in Murfreesboro, Tennessee, Reed City, Michigan, and Saint-Hyacinthe, Québec.
More details regarding the potential financial impact of this deal will be revealed in General Mills’ first quarter report being released today, September 18, 2024. For now, read more about the transactions here.
Keep reading DMN as we report on this strategic play and more.
