General Mills Considering $2B Sale of North America Yogurt Business with Popular Yoplait Brand Amid Competition from Chobani, Danone’s Dannon

General Mills is considering selling its North America yogurt business, which includes the popular Yoplait brand, in a deal that could be worth over $2 billion. The food conglomerate has engaged investment bank JPMorgan Chase to find potential buyers, and other companies active within the snack industry as well as private equity firms are reportedly being approached for their interest. General Mills hopes to achieve a valuation of approximately 10 times its unit’s EBITDA – estimated at around $250 million over the past year – through this sale process, according to sources familiar with the matter who spoke on condition of anonymity due to confidentiality restrictions. Shares in General Mills have fallen by roughly 19% during the last twelve months and currently stand at $71.04 per share as of Friday’s close, giving the company a total valuation worth about $40bn. This follows promising quarterly financial results disclosed in March that surpassed market expectations for third-quarter sales and earnings thanks to higher prices on cereals, snack bars, and pet food products offsetting decreased consumer demand. The French dairy farmers who established Yoplait back in 1964 originally partnered with General Mills through a franchise agreement granting the latter exclusive marketing rights for the brand within America; however, private equity firm PAI Partners and Sodiaal – a cooperative of French dairies – bought into this stake during 2011 before General Mills purchased a majority share worth $1.2bn that same year. In contrast to its European operations which it discontinued by selling them to their co-owner in late 2021, the US and Canadian yogurt divisions of Yoplait are now considered non-core assets as General Mills deals with increased competition from Danone’s Dannon branding along with market leader Chobani. Other companies within this sector have also been active when it comes to mergers; Campbell Soup Company has initiated discussions surrounding the possible divestiture of Noosa Yogurt, which was acquired in conjunction with Sovos Brands last year for $2.7bn. In late 2021, Danone sold its Wallaby yoghurt and Horizon Organic Dairy business brands to private equity corporation Platinum Equity – without disclosing a specific purchase price.