General Mills has agreed to sell its European dough businesses to Cérélia, a global leader in ready-to-bake dough solutions.
The proposed transactions would include General Mills branded and private-label dough businesses in Germany, the UK, and Ireland, including the Knack & Back and Jus-Rol brands.
The transactions is expected to close by the end of fiscal 2022, the company added.
The deal in Germany is subject to appropriate labour consultations, regulatory approvals, and other customary closing conditions.
According to the company, these divestitures are another step in the General Mills Accelerate strategy.
Earlier this month, Bloomberg News reported, citing people with knowledge of the matter, that the company is considering the sale of its soup brand Progresso and ready-to-eat meals label Helper for $3 billion.
The move comes months after General Mills announced the sale of 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.
Superior Shareholder Returns
The strategy centres around clear priorities on where to play – across geographies as well as platforms and brands – to drive long-term, superior shareholder returns.
Internationally, the strategy includes efforts to reshape the company’s portfolio for sustainable and profitable growth.
It aims to achieve these goals by concentrating on advantaged global platforms, which include Mexican food, super-premium ice cream and snack bars, the company added.
In September, the Cheerios maker reported better-than-expected first-quarter sales, as strong growth in its pet foods business cushioned a slowdown in demand for its cooking sauces and baking products.