General Mills to Sell North American Yogurt Business For $2.1 Billion
Yogurt Sale Part of Restructuring
General Mills announced that it has signed agreements to sell its North American yogurt business to two separate buyers for a combined $2.1 billion. The company said the sale is part of a broader restructuring plan and will allow it to focus on its core businesses.
The sale includes the Yoplait, Go-Gurt, and Trix yogurt brands, as well as the company's yogurt manufacturing plants in Batavia, New York, and Fresno, California. The buyers are:
- Schreiber Foods, a leading dairy processor and cheese manufacturer, will acquire the Yoplait brand and the Batavia plant.
- Lactalis, a French dairy company, will acquire the Go-Gurt and Trix brands and the Fresno plant.
Transaction Details
The transaction is expected to close in the second half of 2023, subject to regulatory approvals and other customary closing conditions. General Mills said it will use the proceeds from the sale to pay down debt and invest in its remaining businesses.
The sale of the yogurt business is part of General Mills' broader restructuring plan, which the company announced in December 2022. The plan includes a number of initiatives to improve the company's profitability, including cost cuts, asset sales, and a focus on higher-margin businesses.
Impact on Employees
General Mills said that the sale of the yogurt business will result in the loss of approximately 1,300 jobs. The company said it will work with the affected employees to provide them with severance and other support.
Conclusion
The sale of the yogurt business is a major strategic move for General Mills. The company is hoping that the sale will allow it to focus on its core businesses and improve its profitability. The sale is also a sign of the changing landscape of the food industry, as consumers increasingly shift away from traditional dairy products.
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