GOLDEN VALLEY, Minn. — Big changes are afoot in the dairy aisle of your local grocery store.
General Mills, Inc. announced Thursday that it has agreed to sell its North American yogurt business to two French dairy companies. The deal is valued at $2.1 billion and will close by 2025, according to the press release.
The U.S. operations will go to Lactalis, and Sodiaal will acquire the Canadian business. Some of yogurt brands that will be making the switch are Yoplait, Liberté, Go-Gurt, Oui, Mountain High and :ratio.
In fiscal year 2024, General Mills' yogurt business contributed about $1.5 billion in net sales.
“Today’s announcement represents another significant step forward for General Mills in advancing our Accelerate strategy and our portfolio reshaping ambitions,” said General Mills Chairman and Chief Executive Officer Jeff Harmening.
“In Lactalis and Sodiaal, we believe we’ve found the right homes for these businesses, with dairy-focused owners who are well equipped to drive success for our people and growth for these brands into the future," he added.
For shareholders, General Mills stated in the press release that the transactions will be approximately 3 percent dilutive to adjusted earnings per share in the first year. More details will be available with the company's first-quarter results on Sept. 18, 2024.