Exclusive-General Mills explores sale of $2 billion-plus yogurt business in North America, sources say

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Chassidy’s ultimate challenge | SaltWire #ultimatechallenge #canada #realitytvNEW YORK - General Mills, the maker of Cocoa Puffs and Cheerios breakfast cereals, is exploring a sale of its North America yogurt business including its popular Yoplait brand in a deal that could be worth more than $2 billion, people familiar with the matter said.

In March, General Mills topped market expectations for third-quarter sales and profit, boosted by higher prices for its breakfast cereals, snack bars and pet food products that helped cushion a blow from slowing consumer demand. In 2011, General Mills acquired a 51% stake worth $1.2 billion in Yoplait from private equity firm PAI Partners and French dairy cooperative Sodiaal. Sodiaal retained the remaining stake.

Having already shed the European unit of Yoplait, General Mills sees the remaining yogurt assets as non-core in its current strategy as it faces tough competition from market leaders Chobani and Danone's Dannon brand, the sources said.

 

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