General Mills is proactively seeking bolt-on acquisitions in the snack, pet, and other categories to enhance its growth trajectory. The company, led by CEO Jeff Harmening, focuses on transactions in the $1 to $2 billion range, akin to its Annie’s or Tyson pet treats acquisitions. While larger deals are not off the table, the company sees more opportunities in smaller-sized assets. This acquisition interest comes on the heels of General Mills’ plan to divest its North American yogurt business to Lactalis and Sodiaal for $2.1 billion in cash. This strategic move, part of a broader portfolio reshaping effort that includes past divestments like its European dough business, aims to improve the company’s growth profile and margins. The divested yogurt segment generated $1.5 billion in net sales in fiscal 2024 but had lower profit margins. Should suitable acquisitions not be identified, General Mills is prepared to return excess cash to shareholders via share repurchases, demonstrating its strong balance sheet.
Food & Beverage, Pet Care, Corporate Finance,United States, Canada, Europe
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