General Mills to Sell North American Yogurt Business to French Dairy Firms for $2.1 Billion

In a major transaction, General Mills has announced its decision to sell its North American yogurt business to a consortium of French dairy companies for $2.1 billion. The sale includes popular brands like Yoplait, which has long been a leader in the U.S. yogurt market. This move comes as General Mills refocuses its strategy on its core businesses, including cereals and snacks, while shifting away from certain dairy products.

The buyer group, made up of French dairy firms including Sodiaal and Lactalis, aims to expand its footprint in the North American market through the acquisition of General Mills’ yogurt operations. Sodiaal, which already held a significant stake in Yoplait, is expected to strengthen its position in the U.S. and Canada, leveraging the well-known yogurt brand to compete with other top dairy companies.

General Mills has been gradually moving away from some of its dairy operations as it continues to reshape its portfolio. The company sees this sale as an opportunity to streamline its focus and invest more heavily in its fastest-growing categories, like pet food and snack bars. “This decision allows us to sharpen our business and drive stronger growth where we see the most potential,” a General Mills spokesperson said in a statement.

The deal reflects the global nature of the dairy industry, with European companies seeking growth in the lucrative North American market. Analysts predict that the acquisition will give the French companies a stronger foothold in a competitive industry, while allowing General Mills to focus on its higher-margin products.

The transaction is expected to close by mid-2024, pending regulatory approval.