General Mills has announced that it has entered into definitive agreements to sell its North American yogurt business to French dairy companies Lactalis, the world’s largest dairy company, and Sodiaal, in cash transactions valued at an aggregate $2.1 billion. Following the completion of the transactions, the U.S. and Canadian businesses will operate independently, with Lactalis acquiring the U.S. business and Sodiaal acquiring the Canadian business. The proposed transactions are expected to close in calendar 2025, subject to receipt of requisite regulatory approvals and other customary closing conditions.

The divestitures encompass the U.S. and Canada operations of several yogurt brands including Yoplait, Liberté, Go-Gurt, Oui, Mountain High, and :ratio , as well as manufacturing facilities in Murfreesboro, Tenn., Reed City, Mich., and Saint-Hyacinthe, Québec. Collectively, the North American yogurt business contributed approximately $1.5 billion USD to General Mills’ fiscal 2024 net sales.

“Today’s announcement represents another significant step forward for General Mills in advancing our accelerate strategy and our portfolio reshaping ambitions,” said General Mills Chairman and Chief Executive Officer Jeff Harmening. “Upon completion of these divestitures, we will have turned over nearly 30% of our net sales base since fiscal 2018. By efficiently managing our portfolio and sharpening our focus on our global platforms and local gem brands that have stronger growth prospects and more attractive margins, we will be in a better position to drive top-tier shareholder returns over the long term.”

He continued: “We would also like to take this time to thank our North American Yogurt team members for their significant contributions. In Lactalis and Sodiaal, we believe we’ve found the right homes for these businesses, with dairy-focused owners who are well equipped to drive success for our people and growth for these brands into the future.”

General Mills anticipates the combined transactions will be approximately 3% dilutive to adjusted earnings per share in the first 12 months after the close, excluding transaction costs and other one-time impacts. The company expects to use the net proceeds from the transactions for share repurchases.

Lactalis Chairman Emmanuel Besnier said, "With this acquisition, we are expanding our position in the U.S. yogurt market. These iconic brands are a strategic fit for Lactalis that broaden the range of our consumers and allow us to become a key dairy player in the U.S.”

In March 2021, General Mills announced the sale of 51% controlling interest in its European Yoplait operations to Sodiaal. As part of that transaction, General Mills acquired full ownership of the Canadian Yoplait business.

Upon announcing the latest deal, Jean-Michel Javelle, president of Sodiaal, said the company was “proud” to take over the activities of Yoplait and Liberté brands in Canada. “This project further confirms Yoplait's return to the cooperative's vision, a true national heritage brand that makes our farmers and employees proud.”

He added, “This acquisition strengthens our presence around the world and further promotes our French dairy expertise, which is appreciated across the Atlantic.”