General Mills Announces Proposed Sale of European Yoplait Operations to Sodiaal
March 23 2021 - 8:30AM
Business Wire
Growth- and margin-accretive transaction to
advance General Mills’ portfolio reshaping strategy
General Mills (NYSE: GIS) today announced that it has entered
into a memorandum of understanding to sell its 51 percent
controlling interest in Yoplait S.A.S. to Sodiaal, a leading French
dairy cooperative, in exchange for full ownership of the Canadian
Yoplait business and a reduced royalty rate for use of the Yoplait
and Liberté brands in the United States and Canada. The proposed
transaction is expected to close by the end of calendar 2021,
subject to appropriate labor consultations, regulatory filings, and
other customary closing conditions.
Following completion of the transaction, Yoplait S.A.S. would
operate yogurt businesses in France, the United Kingdom, and
certain other markets, and manage a network of 28 franchisees
manufacturing and distributing Yoplait branded products in more
than 40 countries around the world. Net sales for the Yoplait S.A.S
business that would be wholly owned by Sodiaal totaled $740 million
in fiscal 2020. Under the terms of the transaction, General Mills
would acquire Sodiaal’s 49 percent ownership interest in Yoplait
Canada Holding Co., making the Yoplait Canada yogurt business,
which generated $290 million in net sales in fiscal 2020, a wholly
owned subsidiary of General Mills. Following completion of the
transaction, General Mills would wholly own yogurt operations in
the United States and Canada that generated a combined $1.4 billion
in net sales in fiscal 2020 and would distribute Yoplait and
Liberté branded products in the United States and Canada on a
royalty-free basis.
“With today’s announcement, we’re taking another step toward
advancing our Accelerate strategy and further reshaping our
portfolio to drive profitable growth for the long term,” said
General Mills Chairman and Chief Executive Officer Jeff Harmening.
“This transaction improves our growth profile, enhances our
margins, and creates value for our shareholders. Additionally, it
increases our focus on the brand platforms that have the greatest
growth potential.”
“This transaction allows us to accelerate our Europe &
Australia segment’s growth by increasing our focus on our
advantaged global platforms, including Mexican food, super-premium
ice cream, and snack bars,” added Dana McNabb, Group President of
General Mills’ Europe & Australia segment. “At the same time,
we are pleased to be returning the European Yoplait business to the
brand’s original creator and our trusted partner, Sodiaal. The
General Mills team will work diligently alongside Sodiaal to ensure
a smooth transition as this business enters its next chapter.”
About General Mills
General Mills is a leading global food company whose purpose is
to make food the world loves. Its brands include Cheerios, Annie's,
Yoplait, Nature Valley, Häagen-Dazs, Betty Crocker, Pillsbury, Old
El Paso, Wanchai Ferry, Yoki, BLUE and more. Headquartered in
Minneapolis, Minnesota, USA, General Mills generated fiscal 2020
net sales of U.S. $17.6 billion. In addition, General Mills’ share
of non-consolidated joint venture net sales totaled U.S. $1.0
billion.
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