General Mills announced that it has agreed to acquire TNT Crust, a US-based manufacturer of frozen pizza crusts for regional and national pizza chains, foodservice distributors and retail outlets.
As part of the deal, General Mills will also acquire two manufacturing facilities in Green Bay, Wisconsin, and one manufacturing facility in St. Charles, Missouri.
TNT Crust is currently a portfolio company of Peak Rock Capital, General Mills added.
General Mills Acquisition Of TNT Crust
TNT Crust manufactures partially baked, self-rising, and 'better-for-you' pizza crusts that complement General Mills’ existing frozen baked goods portfolio.
Over the past four years, the company has seen double-digit compound annual net sales growth, with net sales amounting to approximately $100 million in 2021.
General Mills added that it intends to fund the acquisition with cash on hand and short-term borrowings.
The transaction, subject to regulatory approval and other closing conditions, is expected to close in the first quarter of fiscal 2023.
Shawn O’Grady, group president of North America Foodservice at General Mills, said, "This acquisition advances our Accelerate strategy and builds on our strong position in the fast-growing away-from-home frozen baked goods category.
"We have clear competitive advantages in Foodservice with our strategic customer partnerships, best-in-class supply chain, and operator-first innovation capabilities. By adding the high-growth TNT Crust business to our frozen baked goods platform, we are adding to our scale in a category that is on trend with consumers and poised for continued rapid growth."
Jones Day is serving as legal adviser to General Mills for the transaction.
Evercore is advising TNT Crust and Goldman Sachs & Co. LLC is co-advising, and Kirkland & Ellis is serving as TNT Crust’s legal adviser, General Mills noted.