General Mills Expands Natural and Organic Foods Business with Acquisition of Annie's
09 Sep 2014 --- General Mills has announced it has entered into a definitive agreement to acquire Annie’s, a leading US producer of branded organic and natural food products with net sales of $204 million in its latest fiscal year (completed March 2014).
Annie’s will join General Mills’ US natural and organic products portfolio, which includes the Cascadian Farm, Muir Glen, LÄRABAR and Food Should Taste Good brands. Net sales for these General Mills brands totaled approximately $330 million in its latest fiscal year (ended May 2014).
Jeff Harmening, General Mills Executive Vice President and Chief Operating Officer US Retail, said, “This acquisition will significantly expand our presence in the US branded organic and natural foods industry, where sales have been growing at a 12% compound rate over the last 10 years. Annie’s competes in a number of attractive food categories, with particular strength in convenient meals and snacks; two of General Mills’ priority platforms. Consumers know and trust Annie’s purpose-driven culture and authentic brand. We believe that combining the Annie’s product portfolio and go-to-market capabilities with General Mills’ supply chain, sales and marketing resources will accelerate the growth of our organic and natural foods business.”
Under terms of the agreement, General Mills will acquire Annie’s for $46.00 per share in cash. The proposed transaction has an aggregate value of approximately $820 million. The Annie’s Board of Directors has unanimously recommended that Annie’s stockholders accept the General Mills offer. General Mills will launch a tender offer within ten business days to purchase all outstanding shares of Annie’s. General Mills’ offer will be subject to the tender of a majority of Annie’s shares and to certain other customary closing conditions including regulatory approval. The transaction is expected to close later in calendar 2014.
General Mills intends to fund the acquisition through available credit. The transaction is expected to be accretive to General Mills earnings in the first 12 months following completion, excluding certain purchase accounting adjustments, and transaction and integration expenses.
About Annie’s
Headquartered in Berkeley, California, Annie’s is a rapidly growing natural and organic food company with a widely recognized brand. Founded in 1989, Annie’s markets more than 145 products and is present in more than 35,000 retail locations in the United States and Canada.
About General Mills
General Mills is one of the world’s leading food companies, operating in more than 100 countries around the globe. Its brands include Cheerios, Fiber One, Häagen-Dazs, Nature Valley, Yoplait, Betty Crocker, Pillsbury, Green Giant, Old El Paso, Wanchai Ferry, Yoki and more. Headquartered in Minneapolis, Minn., USA, General Mills had fiscal 2014 worldwide sales of $17.9 billion. General Mills acquired Small Planet Foods and its Cascadian Farm and Muir Glen organic food brands in January 2000. The LÄRABAR line of fruit and nut-based snack bars was added to the portfolio in 2008, and the Food Should Taste Good line of savory snacks was added in 2012. Today, the company competes in 14 categories in the fast-growing natural and organic industry, generating annual net sales of approximately $330 million in fiscal 2014.
