General Mills, the US food giant, has announced a deal to sell its 51% controlling interest in European Yoplait S.A.S. to French dairy cooperative Sodiaal.
The ‘memorandum of understanding’ set between both firms includes a reduced royalty rate for use of the Yoplait and Liberte brands in the United States and Canada, as well as full ownership of the Canadian Yoplait business – making the Yoplait Canada yoghurt business a wholly-owned subsidiary of General Mills.
Upon completion, the transaction will let Yoplait S.A.S. operating yogurt businesses in France, the United Kingdom “and certain other markets” not yet revealed. Yoplait S.A.S. should also manage its 28 franchisees manufacturing and distributing network in more than 40 countries around the world.
General Mills chairman and CEO, Jeff Harmening, said: “With today’s announcement, we’re taking another step toward advancing our Accelerate strategy and further reshaping our portfolio to drive profitable growth for the long term. This transaction improves our growth profile, enhances our margins, and creates value for our shareholders. Additionally, it increases our focus on the brand platforms that have the greatest growth potential.”
The proposed transaction is expected to be closed by the end of 2021.
Source: Business Wire