General Mills has sold its US and Canadian yogurt businesses to Lactalis and Sodiaal respectively.
The deals were struck for a total of $2.1bn, General Mills revealed today (12 September).
The Cheerios maker said its North American yogurt business contributed approximately $1.5bn to General Mills’ fiscal 2024 net sales. Total net sales reached $19.9bn for the year.
The transaction sees France-headquartered Lactalis acquire General Mills’ US yogurt business, including the rights to the Yoplait and Liberté brands.
French dairy cooperative Sodiaal bought General Mills’ 51% controlling interest in the European operations of yogurt business Yoplait in 2021, in exchange for full ownership of the Canadian Yoplait business.
However, today Sodiaal confirmed it has entered into a definitive agreement with General Mills to acquire Yoplait and Liberté’s Canadian operations.
The transactions mark General Mills' departure from the yogurt market.
“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 CEO Jeff Harmening.
“Upon completion of these divestitures, we will have turned over nearly 30% 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.”
General Mills said it anticipates the transactions will be approximately “3% dilutive to adjusted earnings per share in the first 12 months after the close, excluding transaction costs and other one-time impacts”.
Jean-Michel Javelle, president of Sodiaal, said: “We are proud to have signed this agreement with General Mills to resume the operations of our Yoplait and Liberté brands in Canada.
“This project confirms the return of Yoplait to the fold of the cooperative, a true national heritage brand that is the pride of our member farmers and our employees. This acquisition strengthens our presence in the world and enhances our French dairy expertise, which is appreciated across the Atlantic.”
Sodiaal, which has been present in Canada since 1971, will manage Yoplait’s operations in Canada which had an annual turnover of C$500m ($368m) as of 26 May 2024. The transaction includes a production site located in Saint-Hyacinthe, Quebec.
Lactalis’ US acquisition includes yogurt brand Mountain High, as well as brands under license like Yoplait, Go-Gurt, Oui and others.
Employees from General Mills manufacturing sites in Murfreesboro, Tennessee, and Reed City, Michigan as well as its headquarters in Minneapolis, Minnesota, will join the Lactalis workforce.
“With this acquisition, we are expanding our position in the US yogurt market. These iconic brands are a strategic fit for Lactalis that broaden the range of our consumers and allow us to become a key dairy player in the US,” said Lactalis chairman Emmanuel Besnier.
