Consumer foods manufacturer General Mills has announced that it has entered into an agreement to sell its Helper main meals and Suddenly Salad side dishes businesses to Eagle Family Foods Group.
Net sales for the Helper and Suddenly Salad businesses totalled nearly $235 million (€219 million) in fiscal year 2021, General Mills said.
The company aims that the divestiture will be dilutive to its adjusted earnings per share in the range of around 10 to 11 cents in the first 12 months after closing, before factoring in any potential benefit from the use of proceeds from the sale.
Eagle Family Foods Group, a portfolio company of Kelso & Company operates through club stores, foodservice, the US military, and private label business.
'Reshape Our Portfolio'
Commenting on the sale, Jon Nudi, President at General Mills Group (North America retail) said, “With this divestiture, we are continuing to reshape our portfolio and advance our Accelerate strategy."
The proposed transaction is expected to close in the first quarter of fiscal year 2023, and is subject to regulatory approval.
“This transaction improves our North America retail segment’s growth profile and allows us to increase our focus on brands and categories where we have the best opportunities to drive profitable growth," Nudi added.
Headquartered in Minnesota, General Mills's portfolio of brands comprises Cheerios, Nature Valley, Blue Buffalo, Häagen-Dazs, Old El Paso, Pillsbury, Betty Crocker, Yoplait, Annie’s, Wanchai Ferry and Yoki.