General Mills announced that it will sell its North American yogurt business to Lactalis and Sodiaal, two leading French dairy companies, for $2.1 billion. The all cash deal is structured as an stock purchase whereby General Mills will divest brands including yogurt brands including Yoplait, Libert, Go-Gurt, Oui, Mountain High, and :ratio. The deal is expected to close in 2025.
The sale is part of the General Mill’s plan to focus its operations. The food giant generated $20 billion in net fiscal 2024 sales, of which its yogurt businesses contributed $1.5 billion.
“Upon completion of these divestitures, we will have turned over nearly 30 percent of our net sales base since fiscal 2018,” according to General Mill’s press release. “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, we will be in a better position to drive top-tier shareholder returns over the long term.”
Yogurt is an ancient food that can be traced back to Mesopotamia during the Neolithic period approximately 7,000 years ago. Historians theorize that the food, like butter, was discovered by accident when milk was exposed to bacteria or soured in the warm climate. This fermented version of milk was a means of preserving it, since the acidity of yogurt helps inhibit the growth of harmful bacteria.
From the texts of nomadic Turks to the pottery ancient Greeks, historians find abundant evidence of the food’s spread across the ancient world – though the Greeks initially viewed it as food only fit for lower classes. On into the 12th and 13th centuries, yogurt helped feed Genghis Khan’s Mongolian army, with Khan attributing his soldiers’ bravery to the food. Dannon first added jam to yogurt in 1929 and helped fuel its popularity in the modern world.
Today, yogurt remains a popular food across the globe. It is most heavily consumed in Europe and generally less so across Africa and southern Asia. Consumption is projected to grow at a CAGR of 6.9% as consumers have rediscovered it as a healthy, ready-to-eat addition to their diets. Many varieties are high in protein, fortified with vitamins and calcium, and aide in digestion.
According to one study conducted by Dannon, approximately 37% of all women and children across the U.S. have consumed yogurt during the past two weeks, while just 24% of men. The reason for the gender divide is unclear, with researchers finding that women tend to eat more yogurt across Western cultures.
According to DealPulse’s M&A database, which harnesses both AI and attorneys to digest the granular deal points of publicly announced transactions, General Mills is advised by law firm Cleary Gottlieb Steen & Hamilton LLP and financial advisor J.P. Morgan.
