General Mills (GIS) agrees to sell European brands to Cérélia
09:35, 25 November 2021
US-listed General Mills (GIS) has agreed to sell its European dough businesses to Cérélia, a chilled ready-to-bake dough product specialist.
Cérélia was founded in France in the 1970s.
The proposed deal will include General Mills branded and private-label dough businesses in Germany, the UK, and Ireland, including the Knack & Back and Jus-Rol brands.
Each respective brand sale is expected to be completed by the end of the 2022 financial year, with the German transaction subject to appropriate labour consultations, regulatory approvals, and other customary closing conditions.
Sales satisfy strategy
The proposed sales fit in with General Mills’ strategy to focus on key geographies as well as platforms and brands to boost long-term, shareholder returns.
The company’s strategy includes efforts to “reshape the company’s portfolio for sustainable, profitable growth by increasing its focus on advantaged global platforms, which include Mexican food, super-premium ice cream and snack bars.”
The stock price of General Mills has jumped around over the last few months – hitting a low of $54.37 back in January before recovering to a closing price of $63.46 on Wednesday.