Packaged food company General Mills Inc said on Tuesday it would sell its majority stake in the European operations of Yoplait to French dairy cooperative Sodiaal in exchange for full ownership of the yogurt maker’s Canadian business.
General Mills will buy Sodiaal’s 49% ownership interest in Yoplait Canada Holding Co, making it a wholly-owned subsidiary of the U.S. company, while Sodiaal will fully own Yoplait S.A.S., the Europe unit.
As part of the deal, General Mills will be able to make use of the Yoplait and Liberté brands in the United States and Canada at a reduced royalty rate.
After the completion of the transaction, which is expected at the end of 2021, Yoplait S.A.S. would operate yogurt businesses in France, UK and certain other markets.
General Mills had bought a 51% stake in Yoplait from PAI Partners for about $1.15 billion in 2011.
Source: Reuters.com