USA – General Mills, Inc. has completed the sale of its Canadian yogurt business to French dairy cooperative Sodiaal.
The deal includes the Canadian operations of Yoplait and Liberte brands, along with a manufacturing facility in Saint-Hyacinthe, Quebec.
This sale is part of the company’s strategic decision to divest its North American yogurt businesses.
According to reports, General Mills had announced in mid-September its plan to sell its Canadian operations to Sodiaal and its U.S. yogurt business to the Lactalis Group for a total of around US$2.1 billion.
While the Canadian transaction is now finalized, the sale of the U.S. business is expected to close later in 2025.
Following the completion of the Canadian deal, General Mills updated its fiscal 2025 outlook, predicting adjusted earnings per share to be down between 4% and 2%, a revision from an earlier range of down 3% to down 1%.
Despite this adjustment, the company stated that the transaction will not impact its forecast for organic net sales growth or its expectations for adjusted operating profit growth and free cash flow conversion.
Emmanuel Besnier, Chairman of Lactalis, expressed that the acquisition of General Mills’ U.S. yogurt business offers the company a strategic opportunity to strengthen its position in the American yogurt market.
Besnier highlighted that acquiring such iconic brands would enhance their consumer offerings and solidify Lactalis’ role as a major player in the U.S. dairy sector.
Meanwhile, Sodiaal’s acquisition of the Canadian and European yogurt operations marks a return of Yoplait to its portfolio, further reinforcing its presence in North America.
Jean-Michel Javelle, President of Sodiaal, shared his pride in resuming control of Yoplait in Canada, describing the deal as a key move for both the cooperative and its farmer members.
The Canadian operations, which reported an annual turnover of C$500 million as of May 2024, include a key production site in Saint-Hyacinthe.
This acquisition marks an important step for Sodiaal, which now holds a 51% controlling interest in Yoplait’s European operations as well.
General Mills’ Chairman and CEO, Jeff Harmening, explained that the sale aligns with the company’s “Accelerate” strategy, allowing it to focus on core areas with stronger growth potential.
He noted that the yogurt business contributed approximately US$1.5 billion to the company’s net sales in fiscal 2024, which amounted to US$19.9 billion.
Despite the divestiture, Harmening emphasized that General Mills’ broader strategy remains unchanged. He added, “These transactions will help us focus on our most promising areas for growth moving forward.”
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