General Mills In Exclusive Talks To Own Majority Stake Of Yoplait (GIS)

General Mills GIS announced this morning that it is in exclusive negotiations to buy a majority stake in French yogurt company Yoplait.

It was first reported yesterday that General Mills was likely to emerge as the winning bidder for the 51% stake in the company, buying the stake from French investment firm PAI Partner.

General Mills' offer includes a 50 percent interest and a controlling role in the company, the company said.

The statement did not include specific terms, but the deal supposedly would value the company around $2.2 billion.

From the press release:

General Mills announced today that it has entered into exclusive negotiations with PAI Partners and Sodiaal to purchase interests in Yoplait S.A.S., and affiliated companies.

General Mills' binding offer includes a controlling role in the operating company and a 50 percent interest in the entity which owns Yoplait and related brands.

Negotiations are in progress, and consultation procedures with the respective works' councils are being initiated.

Under the proposed transaction, General Mills will partner with Sodiaal in expanding and growing the Yoplait brand and businesses in France, Europe and around the world.

General Mills and Sodiaal have been successful business partners for decades. General Mills has licensed the Yoplait brand since 1977, and is Yoplait's largest licensee. It has grown its Yoplait business to the clear leadership position in yoghurts in the United States, one of the world's largest fresh dairy markets.

General Mills has been marketing food products in France for 50 years. Leading General Mills products, including Häagen-Dazs super-premium ice creams and Géant Vert vegetables, are also produced in France.

Shares of GIS are up 32 cents in pre-market trading to $36.45, a gain of 0.9%.