General Mills (GIS) Acquires $1.1 Billion Stake in Yoplait

The deal made between General Mills (NYSE:GIS) for Yoplait includes the creation two structures - one entity that holds the brand rights and another company that runs the operations. That allows Sodiaal to retain an equal stake in the lucrative licensing business, while General Mills takes a 51 percent stake in the operating business.

General Mills has held the license for Yoplait yoghurt in the United States since 1977, where it has a market share of around 35 percent.

The acquisition of the Yoplait stake protects General Mills' U.S. distribution rights and eliminates the risk of a competitor edging in on that business, analysts said.

The deal also provides an attractive exit for France's PAI Partners, which first invested in Yoplait in 2002, when the company was valued at about 400 million euros.

General Mills was trading at $36.40, up $0.27, or 0.75 percent, as of 12:51 PM EDT.



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