General Mills Inc. announced Thursday that it has agreed to sell its North American yogurt business for $2.1 billion in cash to two French dairy companies, Groupe Lactalis SA and Groupe Sodiaal. The sale is part of the company's strategy to focus on its core brands.

General Mills sells North America yogurt business : Details of the Sale

The Minneapolis-based food giant has entered into a definitive agreement with Groupe Lactalis to sell its U.S. yogurt business, which includes brands like Yoplait, Liberté, and Go-Gurt. Lactalis, known for products such as Président cheese and Rachel’s Organic, will also acquire the manufacturing facility in Reed City, Michigan.

Simultaneously, General Mills has agreed to sell its Canadian yogurt business to Groupe Sodiaal, the owner of brands such as Candia milk and Yoplait. The sale includes the manufacturing plant in Saint-Hyacinthe, Québec.

General Mills sells North America yogurt business : Strategic Shift

General Mills CEO Jeff Harmening stated that the sale would allow the company to sharpen its focus on core global brands like Pillsbury, Cheerios, and Häagen-Dazs, which offer stronger growth and profitability. Harmening emphasized that this move will position General Mills to deliver better returns to shareholders in the long term.

The company expects to use the proceeds from the sale for shareholder buybacks. The North American yogurt business contributed approximately $1.5 billion to General Mills' 2024 net sales.

Timeline and Advisors

The deal is expected to close in 2025, pending regulatory approvals. Cleary Gottlieb Steen & Hamilton LLP is advising General Mills, with partners Charles Allen and Paul Shim leading the legal team.