USA: Annie’s bought up by General Mills

Annie's has announced a definitive agreement to be acquired by General Mills for US$46 per share in cash, for a total transaction value of approximately US$820m (about €634m). This acquisition will enable Annie's to enter a new phase of growth and success while maximizing value for stockholders, the company reports. Annie's will continue to be headquartered in Berkeley, California. Annie's is a natural and organic food company with a range of over 145 products and is present in over 35,000 retail locations in the USA and in Canada. More information is available here.

Rising commodity costs have hampered Annie’s ability to maintain profit in recent months. While revenues were up 10% in the most recent quarter, its margins dropped. Before the General Mills deal was announced, Annie’s stock had fallen 22% on the year, Forbes reports. General Mills’ current organic brands, including Cascadian Farm and Muir Glen, generated US$330 million in revenue in the last fiscal year. The company expects the transaction to be accretive to earnings in the first 12 months following completion. The full article is available here. More information on shifts in major corporate ownership into the organic sector is available here.