General Mills to sell North America yogurt operations to Lactalis, Sodiaal in US$2-billion deal

General Mills GIS-N will sell its North America yogurt business to French dairy firms Groupe Lactalis and Sodiaal in a $2.1-billion deal, the Cheerios maker said on Thursday.

Lactalis will acquire the U.S. business and Sodiaal will buy the Canadian unit, the company said.

Reuters reported in April that General Mills was working with investment bank JPMorgan Chase to attract interest from potential buyers for the business, which houses brands such as Yoplait and Liberté.

Yoplait is facing tough competition in the U.S. from privately held yogurt brand Chobani, as well as Danone’s Dannon brand.

The North American Yogurt business contributed about $1.5-billion to General Mills’ fiscal 2024 net sales.

Packaged food makers are divesting units not delivering high growth to rein in costs and focus on expanding their core brands as they respond to consumers seeking cheaper alternatives.

Bloomberg News earlier on Thursday reported that General Mills was in talks to sell the North America yogurt operations, to French dairy firms Groupe Lactalis and Sodiaal.

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Publish date : 2024-09-12 00:19:00

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