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General Mills said on September 12, 2024 that it entered into definitive agreements to sell its North American Yogurt business to affiliates of Lactalis and Sodiaal, in cash transactions valued at an aggregate $2.1 billion. The company said it expects the transactions to close in calendar 2025.

8-KRegulation FD DisclosureFiled Period of report Summary published (UTC)

Key points

AI summary
  1. General Mills said on September 12, 2024 that it entered into definitive agreements to sell its North American Yogurt business to affiliates of Lactalis and Sodiaal, in cash transactions valued at an aggregate $2.1 billion. The company said it expects the transactions to close in calendar 2025.

  2. The company said the divestitures include the U.S. and Canadian businesses of the Yoplait, Liberté, Go-Gurt, Oui, Mountain High and :ratio brands, as well as the Murfreesboro, Reed City and Saint-Hyacinthe manufacturing facilities. It said the business contributed about $1.5 billion to fiscal 2024 net sales.

  3. General Mills said that after the transactions close, Lactalis will acquire the U.S. business and Sodiaal will acquire the Canadian business, and that each will operate independently. The company said the transactions are subject to receipt of required regulatory approvals and other customary closing conditions.

  4. General Mills said it expects the transactions to be about 3% dilutive to adjusted earnings per share in the first 12 months after closing, excluding transaction costs and other one-time impacts. The company also said it plans to use the net proceeds for share repurchases.

Summary

AI-written

Analysis scope · Filing body and confirmed press-release exhibitWe analyzed the filing body and confirmed exhibits. This is not a review of other exhibits, investor presentations or the full earnings call.

North American Yogurt Divestiture Agreements

General Mills said on September 12, 2024 that it entered into definitive agreements to sell its North American Yogurt business to affiliates of Lactalis and Sodiaal, in cash transactions valued at an aggregate $2.1 billion. The company said it expects the transactions to close in calendar 2025.

Source · Based on the filing body and exhibits

Divested Brands, Facilities and Sales Contribution

The company said the divestitures include the U.S. and Canadian businesses of the Yoplait, Liberté, Go-Gurt, Oui, Mountain High and :ratio brands, as well as the Murfreesboro, Reed City and Saint-Hyacinthe manufacturing facilities. It said the business contributed about $1.5 billion to fiscal 2024 net sales.

Source · Based on the filing body and exhibits

Buyers and Closing Conditions

General Mills said that after the transactions close, Lactalis will acquire the U.S. business and Sodiaal will acquire the Canadian business, and that each will operate independently. The company said the transactions are subject to receipt of required regulatory approvals and other customary closing conditions.

Source · Based on the filing body and exhibits

Adjusted EPS Impact and Use of Proceeds

General Mills said it expects the transactions to be about 3% dilutive to adjusted earnings per share in the first 12 months after closing, excluding transaction costs and other one-time impacts. The company also said it plans to use the net proceeds for share repurchases.

Source · Based on the filing body and exhibits

AI summarized the filing and translated the summary into English; it may differ from the original. For reference only, not investment advice. AI translated the published Korean report into English. Figures are copied as filed, not recalculated.

Original filing

The filing as submitted to SEC EDGAR. You can check the figures and statements of this summary against it.

Source: SEC EDGAR (U.S. Securities and Exchange Commission). Item captions are the SEC's. The summary is for reference only and is not investment advice.