General Mills to Sell U.S., Canada Yogurt Business for $2B

14 Sep, 2024

General Mills to Sell U.S., Canada Yogurt Business for $2B

General Mills has finalized the sale of its U.S. and Canadian yogurt businesses for a combined $2.1 billion, with the transactions marking a strategic shift for the company. The U.S. yogurt business, including the Yoplait and Liberté brands, has been acquired by French dairy giant Lactalis. This acquisition bolsters Lactalis’ presence in the U.S. yogurt market, adding brands like Mountain High, Go-Gurt, and Oui to its portfolio.

In Canada, French cooperative Sodiaal has purchased General Mills' Canadian yogurt operations, which include the Yoplait brand. This deal completes Sodiaal’s acquisition of Yoplait’s European operations, solidifying its control over the Canadian segment. Sodiaal, already established in Canada since 1971, will manage the Canadian operations from a production site in Saint-Hyacinthe, Quebec.

The divestiture is part of General Mills’ Accelerate strategy to reshape its portfolio and focus on higher-growth areas. The company anticipates that the sales will be about 3% dilutive to adjusted earnings per share in the first year post-transaction, excluding costs and one-time impacts. General Mills aims to enhance shareholder returns by concentrating on global platforms and local brands with stronger growth prospects.