General Mills to Divest North American Yogurt Business in Cash Deals Worth $2.1B

General Mills announces its intention to sell its North American yogurt business to two separate buyers in deals valued at $2.1 billion.

General Mills, Inc., a leading global food company, has signed agreements to divest its North American yogurt business to two separate buyers in cash deals valued at a total of $2.1 billion. The transactions are expected to close in the second quarter of fiscal 2023, subject to customary closing conditions, including regulatory approvals.

The divestitures include the sale of the company's yogurt manufacturing facilities in Batavia, New York, and Fresno, California, as well as its Yoplait USA and Liberté yogurt brands. The Yoplait brand will be acquired by Lactalis Group, a leading international dairy company, for $875 million. The Liberté brand, along with the Fresno manufacturing facility, will be acquired by a joint venture between Dairy Farmers of America, the largest dairy cooperative in the United States, and Prairie Farms Dairy, Inc., a leading Midwest dairy cooperative.

The transactions are part of General Mills' ongoing efforts to optimize its portfolio and focus on its core businesses.

General Mills has been facing challenges in its yogurt business in recent years due to increased competition and changing consumer preferences. The divestitures will allow General Mills to focus on its core businesses, which include cereal, snacks, baking products, and pet food.

The transactions are expected to result in a pre-tax gain of approximately $400 million for General Mills. The proceeds from the sales will be used to reduce debt and invest in growth initiatives.