General Mills sells North American yogurt business to Lactalis and Sodiaal for US$2.1 billion

On September 12, 2024, General Mills, Inc. entered into definitive agreements to sell its North American yogurt business to Lactalis and Sodiaal for an aggregate US$2.1 billion (approximately $2.8 billion CAD at the time). Lactalis acquired the U.S. yogurt operations, while Sodiaal took ownership of the Canadian yogurt business. Brands involved in the sale included Yoplait, Liberté, Go-Gurt, Oui, Mountain High, and, along with manufacturing facilities in Tennessee, Michigan, and Québec. The North American yogurt business contributed around $1.5 billion USD (approximately $2 billion CAD) to General Mills’ fiscal 2024 net sales.

The transactions are expected to close in 2025, pending regulatory approvals. The divestiture aligned with General Mills’ ongoing strategy to reshape its portfolio and focus on higher-margin, growth-oriented brands. The deals were anticipated to dilute General Mills' adjusted earnings per share by 3% in the first 12 months post-closing. Proceeds from the sales were set to fund share repurchases.

Advisors included J.P. Morgan as the exclusive financial adviser to General Mills, with Cleary Gottlieb Steen & Hamilton LLP and McCarthy Tétrault LLP providing legal counsel. Lactalis was represented by Weil, Gotshal & Manges, and Sodiaal by Ropes & Gray LLP.

Deal Type

Merger & Acquisition

Industry

Other

Transaction

$ 2,800,000,000

Deal Status

Active

Closing Date