General Mills Selling North American Yogurt Business for $2.1 Billion
General Mills announced today it has agreed to sell its North American yogurt business to French dairy companies Lactalis and Sodiaal in cash deals valued at an aggregated $2.1 billion.
Upon completion of the divestitures, expected to close in 2025, the U.S. and Canadian businesses will operate independently, with Lactalis purchasing the U.S. unit and Sodiaal acquiring the Canadian business.
The transactions include the operations of several yogurt brands, including Yoplait, Liberté, Go-Gurt, Oui, Mountain High and :ratio, as well as manufacturing facilities in Murfreesboro, Tenn., Reed City, Mich., and Saint-Hyacinthe, Québec.
“Today’s announcement marks another step forward for General Mills in advancing our Accelerate strategy and our portfolio reshaping ambitions. By efficiently managing our portfolio and sharpening our focus on our global platforms and local gem brands that have stronger growth prospects and more attractive margins,” said Jeff Harmening, General Mills chairman and CEO, in a press release.
The Lucky Charms and Cheerios maker’s overarching Accelerate strategy, which was introduced in 2021, hinges on four pillars: “boldly building brands, relentlessly innovating, unleashing scale and being a force for good.”
According to General Mills, its North American yogurt business generated net sales of roughly $1.5 billion in fiscal 2024. The divestitures are expected to dilute General Mills’ earnings FY25 earnings per share by approximately 3% in the first 12 months following the close, according to the release. The company expects to use net proceeds from the deals for share repurchases.
Sodiaal views the deal as a further testament to its ongoing strategic initiatives and reinforcement of “its position as a global leading dairy player,” a separate release states. The transaction also marks a key milestone in the Paris-based company’s strategy to enhance brand value and expand internationally as part of its “Grandir Ensemble” plan.
The Yoplait brand was founded in 1964 by a group of French dairy farmers. It joined forces with General Mills in 1977 through a franchise agreement that gave the company exclusive rights to market the brand in the U.S.
In 2011, General Mills acquired a 51% stake valued at $1.2 billion in Yoplait from private equity firm PAI partners and Sodiaal, which kept the remaining stake. In 2021, the Cheerios maker sold the European operations of Yoplait back to Sodiaal.
“This project further confirms Yoplait’s return to [Sodiaal’s] vision, a true national heritage brand that makes our farmers and employees proud. The acquisition strengthens our presence around the world and further promotes our French dairy expertise, which is appreciated across the Atlantic,” said Jean-Michel Javelle, president of Sodiaal, in a statement.
