General Mills Announces Proposed Sale of European Yoplait Operations to Sodiaal
General Mills has signed a memorandum of understanding to divest its 51% controlling stake in Yoplait S.A.S. to Sodiaal, a major French dairy cooperative. In return, General Mills will acquire full control of the Canadian Yoplait operations, which generated $290 million in fiscal 2020. The transaction, set to close by the end of calendar 2021, will streamline General Mills' focus on brands with greater growth potential, enhancing margins and growth profiles within its portfolio. The global net sales of Yoplait S.A.S. reached $740 million in fiscal 2020.
- Acquisition of full ownership of Yoplait Canada, enhancing control over $290 million in net sales.
- Streamlined focus on profitable brands, likely improving growth and margins.
- None.
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
“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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210323005289/en/
FAQ
What is General Mills' plan for Yoplait S.A.S. as of 2021?
When is the Yoplait S.A.S. transaction expected to close?
How much did Yoplait S.A.S. generate in net sales in fiscal 2020?
What financial benefits does General Mills expect from the Yoplait transaction?
What will happen to the Yoplait brand in the United States and Canada?
