General Mills will sell its yogurt business in the U.S. to the Lactalis Group based in France.  Brands marketed by General Mills include Stonyfield, Brown Cow and Green Mountain Creamery with an annual sales value of $1.2 billion.  Lactalis will acquire all the General Mills brands including Yoplait and manufacturing facilities in Tennessee and Michigan.

Canadian production facilities and brands will be acquired by Sodiaal a dairy cooperative in France.  The annual revenue from the Canadian business previously operated by General Mills amounted to $300 million.

Emmanuel Besnier chairman of the Lactalis Group stated, “With this acquisition we are expanding our position in the U.S. yogurt market.  These iconic brands are a strategic fit for the Lactalis that broaden the range of our consumers and allow us to become a key dairy player in the U.S.”

General Mills will receive $2.1 billion for the sales to Lactalis and Sodiaal combined for all products with an annual sales value of $1.5 billion. It remains to be seen whether the Company will embark on a search for acquisitions  or return the purchase consideration to shareholders