General Mills, one of the leading food producers worldwide, has acquired U.S. producer Annie’s Inc, for USD820m, thus expanding its portfolio of organic and natural foods.
Annie’s Inc produces convenient meals, snacks, frozen pizza and pasta and has recorded net sales of USD204m in its latest fiscal year. Founded in 1989, the company markets more than 145 products and is present in more than 35,000 retail locations in the United States and Canada.
“This acquisition will significantly expand our presence in the U.S. branded organic and natural foods industry, where sales have been growing at a 12 percent compound rate over the last 10 years. Annie’s competes in a number of attractive food categories, with particular strength in convenient meals and snacks—two of General Mills’ priority platforms. Consumers know and trust Annie’s purpose-driven culture and authentic brand. We believe that combining the Annie’s product portfolio and go-to-market capabilities with General Mills’ supply chain, sales and marketing resources will accelerate the growth of our organic and natural foods business,” said Jeff Harmening, General Mills executive vice president and CEO – U.S. Retail.
Jeff Harmening, General Mills Executive Vice President and Chief Operating Officer – U.S. Retail, said, “This acquisition will significantly expand our presence in the U.S. branded organic and natural foods industry, where sales have been growing at a 12 percent compound rate over the last 10 years. Annie’s competes in a number of attractive food categories, with particular strength in convenient meals and snacks—two of General Mills’ priority platforms. Consumers know and trust Annie’s purpose-driven culture and authentic brand. We believe that combining the Annie’s product portfolio and go-to-market capabilities with General Mills’ supply chain, sales and marketing resources will accelerate the growth of our organic and natural foods business.”
General Mills intends to fund the acquisition through available credit and the transaction is expected to close later this year.