General Mills has entered into a definitive agreement to acquire Annie’s, a natural and organic food producer with net sales of $204 million in its latest fiscal quarter.
The brand’s pasta, snacks, meal kits, dressing, condiments and frozen foods — many of which are geared toward kids — will join General Mills’ U.S. natural and organic product portfolio whose net sales totaled approximately $330 million in its latest fiscal year. The portfolio includes the Cascadian Farm, Muir Glen, Larabar and Food Should Taste Good brands.
Under the agreement, General Mills will acquire Annie’s for $46 per share in cash. The proposed transaction has an aggregate value of approximately $820 million. Annie’s Board has unanimously recommended that stockholders accept the offer. The transaction is expected to close later in 2014.
“This acquisition will significantly expand our presence in the U.S. branded organic and natural foods industry, where sales have been growing at a 12% compound rate over the last 10 years,” said Jeff Harmening, General Mills EVP and COO, U.S. Retail, in a statement.
“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.”
|Suggested Categories||More from Supermarketnews|