General Mills to acquire Yoplait stake - reports
The months’ long competition for 50% ownership of global yogurt brand Yoplait is reportedly reaching its end, with industry giant General Mills said to have sealed the acquisition deal for $2.2 billion, besting rivals including PE players and China’s Bright Food Group.
Global reports indicate that General Mills has valued Yoplait at €1.6 billion ($2.2 billion), which equates to 8x return for PAI Partners, the French private equity firm that bought the 50% stake in 2002 for €200 million ($279 million) from French dairy corporation Sodiaal, which continues to hold a 50% stake. The news comes weeks after Yoplait reportedly released a six-group shortlist that included China's Bright Food, which has been the leading bidder for the stake, valuing Yoplait at approximately €1.75 billion ($2.4 billion). At different points of the auction process, Nestle - which, with General Mills, was labeled a leading contender - AXA Private Equity, Bain Capital and Lion Capital, as well as Mexican dairy company Grupo Lala and French cheese and dairy producers Bel and Lactalis were also said to have made bids. In November, Lactalis reportedly made a failed €1.4 billion ($1.9 billion) bid, now validated as General Mills' acquisition figure greatly exceeds this.
This is the latest failed takeover for Bright Food in recent months, as the PRC major was not able to complete deals for Australia's Sucrogen; the UK's United Biscuits, owned by Blackstone and PAI Partners; and the US' GNC, for which it has teamed with Blackstone.
Yoplait claims a 9% global market share in its niche, making it the world's second largest yogurt and dairy producer after Danone.
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