A major divestiture took place recently as General Mills entered into a definitive agreement with Eagle Family Foods Group (known as Eagle Foods). The supplier has agreed to sell its Helper main meals and Suddenly Salad side dishes businesses in a cash transaction valued at approximately $610 million.
“With this divestiture, we are continuing to reshape our portfolio and advance our Accelerate strategy,” said Jon Nudi, General Mills Group President, North America Retail. “This transaction improves our North America Retail segment’s growth profile and allows us to increase our focus on brands and categories where we have the best opportunities to drive profitable growth.”
The proposed transaction is expected to close in the first quarter of fiscal 2023, subject to regulatory approval. According to General Mills’ press release, net sales for the Helper and Suddenly Salad businesses totaled approximately $235 million in fiscal 2021. The company will provide more information on the transaction on its fourth quarter earnings call in late June.
Additionally, the acquisition creates three diversified platforms within Eagle Foods, which are focused on growing center store categories for retailers—snacks, baking, and meals and sides. Eagle will continue investing in its growing snacks and milk business in parallel with this new investment.
“We are builders of brands, categories, and people. The Helper and Suddenly Salad brands, with strong heritage and high consumer awareness, are a perfect fit for what Eagle does best—investing in, innovating, and revitalizing brands to drive growth and nurture them to reach their full potential,” commented Bernard Kreilmann, Chief Executive Officer of Eagle Foods, in a separate release. “We will immediately start expanding the positioning of these two iconic brands and bring consumers tasty, convenient, and affordable meal solutions.”
Goldman Sachs & Co. served as financial adviser to General Mills for the transaction, and Cleary Gottlieb Steen & Hamilton served as legal adviser.
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