General Mills sells North American yogurt business in $2.1B deal

18 Sep, 2024

General Mills sells North American yogurt business in $2.1B deal

Common Plants is offering its North American yogurt commerce to French dairy companies Lactalis and Sodiaal for US$2.1 billion. This move is portion of the company’s technique to reshape its portfolio and center on brands with higher development potential and more grounded edges. Upon completion, Lactalis will take over the US yogurt operations, whereas Sodiaal will oversee the Canadian commerce. Both companies will work these businesses independently.

The exchange includes well-known yogurt brands such as Yoplait, Liberté, Go-Gurt, Oui, Mountain Tall, and proportion, along with US-based fabricating plants in Tennessee and Michigan, as well as a office in Canada. The deal is anticipated to near in 2024, pending administrative endorsements and other standard closing conditions.

General Plants expects the bargain will be around 3% dilutive to its balanced profit per share in the to begin with 12 months after the exchange closes, barring one-time impacts and exchange costs. The continues from the deal will likely be utilized for share repurchases.

The yogurt trade had contributed around US$1.5 billion to Common Mills' financial 2024 net deals. The company will give encourage subtle elements on the transaction's budgetary affect in its profit report on September 18, 2024.