Abigail Somerville
NEW YORK (Reuters) – General Mills, the maker of cocoa puffs and Cheerios breakfast cereals, is considering selling its North American yogurt business, including its popular Yoplait brand, for a potential sale of more than $2 billion. Officials revealed that there is. The matter was said.
The Minneapolis-based food conglomerate is working with investment bank JPMorgan Chase & Co. to gauge interest from potential buyers, which could include rival snack food makers and private equity firms. said one person, requesting anonymity as the discussions are confidential.
General Mills wants to value its yogurt portfolio at nearly 10 times the division's 12-month earnings of about $250 million before interest, taxes, depreciation and amortization, the people said.
General Mills and JPMorgan declined to comment.
General Mills stock had fallen about 19% over the past year to $71.04 as of Friday, valuing the company at about $40 billion.
General Mills reported third-quarter sales and profits that beat market expectations in March, helped by higher prices for breakfast cereals, snack bars and pet food products that cushioned the blow from slowing consumer demand. .
A group of French dairy farmers started Yoplait in 1964, and the company partnered with General Mills in 1977 through a franchise agreement that gave the maker of Bisquick pancake mix exclusive rights to sell the brand in the United States. Ta.
In 2011, General Mills acquired a 51% stake in Yoplait, valued at $1.2 billion, from private equity firm PAI Partners and French dairy cooperative Sodial. Sodial retained the remaining shares.
In 2021, General Mills sold Yoplait's European operations to Sodial. At the time, the company announced that its U.S. and Canadian yogurt operations generated combined net sales of $1.4 billion in fiscal 2020.
General Mills, which has already sold Yoplait's European division, considers its remaining yogurt assets not core to its current strategy as it faces stiff competition from market leader Chobani and Danone's Danone brand. said the official.
The yogurt maker has been trading aggressively over the past year. Campbell Soup is considering selling its Noosa yogurt division, which it acquired last year as part of a $2.7 billion deal with Sobos Brands.
Last year, Danone sold its Wallaby yogurt and Horizon milk brands to Platinum Equity for an undisclosed sum.
(Reporting by Abigail Somerville in New York; Additional reporting by Jessica DiNapoli; Editing by Anirban Sen and Richard Chan)