US-based food firm General Mills has agreed to acquire organic and natural foods producer Annie’s, in a deal worth $820m.
A definitive agreement to this effect was signed between both the companies.
As per the agreed terms, General Mills will acquire Annie's for $46.00 per share in cash.
Annie's produces, markets, and distributes natural and organic food products. It offers approximately 145 products comprising meals, snacks, dressings, condiments, and other products, including macaroni and cheese, snack crackers, fruit snacks, and graham crackers.
The proposed acquisition is expected to expand General Mills' growing natural and organic foods business, where sales have been growing at 12% compound rate over the past decade.
General Mills US Retail chief operating officer and executive vice president Jeff Harmening said: "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 is planning to fund the acquisition through available credit.
Image: Annie's produces macaroni and cheese, snack crackers, fruit snacks, and graham crackers. Photo: courtesy of Nujalee / FreeDigitalPhotos.net.
