MINNEAPOLIS, Sept. 3, 2015 /PRNewswire/ -- General Mills,
Inc., (NYSE: GIS) announced today it has reached a definitive
agreement to sell its Green Giant and Le
Sueur vegetable businesses to B&G Foods, Inc., (NYSE:
BGS) for approximately $765 million in cash, subject to an
inventory adjustment at closing.
General Mills will continue to operate the Green Giant business
in Europe and select other export
markets under license from B&G Foods.
The sale reinforces General Mills' strategic priority to shape
its portfolio for growth, focusing its resources on the brands,
categories, and geographic markets that have the greatest future
growth opportunities.
The Green Giant and Le Sueur
businesses included in the proposed transaction, comprised of the
U.S., Canada, and select other
markets, generated annual net sales of approximately $585 million in fiscal 2015.
The transaction, which is subject to regulatory approval, is
expected to close by the end of the calendar year. General
Mills expects to use the net proceeds for share repurchases and
debt reduction. The company anticipates the transaction will
be dilutive to fiscal 2016 earnings per share in the range of
approximately 5 to 7 cents, excluding
transaction costs and a one-time gain on the sale.
General Mills will provide additional details about the impact
of the transaction when it reports its fiscal 2016 first-quarter
results on September 22, 2015.
Rothschild acted as financial advisor to General Mills on the
transaction.
About General Mills: General Mills is one of the world's
leading food companies, operating in more than 100 countries around
the world. Its brands include Cheerios, Fiber One,
Haagen-Dazs, Nature Valley, Yoplait, Betty
Crocker, Pillsbury, Old El Paso, Wanchai Ferry, Yoki and more.
Headquartered in Minneapolis,
Minn., USA, General Mills had fiscal 2015 worldwide sales of
US $18.7 billion, including the
company's US $1.1 billion
proportionate share of joint-venture net sales.
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, including statements regarding the anticipated timing and
completion of the transaction, the use of proceeds from the
transaction and the impact of the transaction on future earnings
per share. These forward-looking statements are based on
facts and circumstances known to us as of the date the statements
are made and are subject to risks and uncertainties that could
cause actual results to be materially different from those set
forth in such forward-looking statements, including but not limited
to, obtaining necessary approvals and consents for the transaction,
fulfillment of other transaction conditions, economic conditions,
and overall business and capital allocation strategy. See
"Risk Factors" in our fiscal 2015 Annual Report on Form 10-K filed
with the Securities and Exchange Commission for additional
information regarding these and other risks and uncertainties
applicable to our business. The company assumes no obligation to
publicly update any forward-looking statement.
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SOURCE General Mills, Inc.