General Mills to sell Helper and Suddenly Salad to Eagle Foods for $610m
General Mills has agreed to divest its Helper main meals and Suddenly Salad side dishes businesses to Eagle Family Foods Group (Eagle Foods) for a cash consideration of around $610 million.
The Helper and Suddenly Salad businesses had net sales of around $235 million in fiscal 2021.
General Mills said that the transaction is expected to be dilutive to its adjusted earnings per share in the range of around 10-11 cents in the first 12 months after closing. This is prior to factoring in any possible benefit from the use of proceeds from the divestiture, said the American consumer foods company.
Jon Nudi — General Mills Group North America Retail President said: “With this divestiture, we are continuing to reshape our portfolio and advance our Accelerate strategy.
“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.”
Eagle Family Foods, which is a portfolio company of Kelso & Company, said that the acquisition of the Helper main meals and Suddenly Salad side dishes businesses create diversified platforms.
According to Eagle Family Foods, the platforms are snacks, baking, and meals and sides. The Ohio-based food manufacturer said that it will continue to invest in its snacks and milk business simultaneously with the new investment.
Bernard Kreilmann — CEO of Eagle Family Foods said: “We are builders of brands, categories, and people.
“The Helper and Suddenly Salad brands, with strong heritage and high consumer awareness, are a perfect fit for what Eagle does best – investing in, innovating, and revitalizing brands to drive growth and nurture them to reach their full potential.”
The deal, which is subject to regulatory approval, is likely to close in the first quarter of fiscal 2023.