Sodiaal and PAI partners grant an exclusivity period to General Mills for the acquisition of PAI’s 50% stake in Yoplait. 

Following the launch of a competitive bidding process which began in late 2010, PAI partners and Sodiaal, the joint owners of Yoplait, have reached an exclusivity agreement with US group General Mills.  

General Mills’ binding offer is in keeping with the structure envisaged for the transaction which makes a distinction between the brand and the operating company. Sodiaal will jointly own the Yoplait brand worldwide and will be a core shareholder in the operating company. This structure ensures Sodiaal remains a key shareholder of Yoplait and consolidates the group’s French roots.

This transaction further cements the longstanding relationship between Yoplait and General Mills which began in 1977 when General Mills was granted the Yoplait brand licence in the US. Since then, General Mills and Yoplait have built the uncontested leader in yoghurts in the US, one of the world’s largest fresh dairy markets, with close to a 35% market share. 

With $16 billion net sales in 2010, General Mills is one of the largest food companies in the world, operating in more than 100 countries with a portfolio of well-known consumer brands such as Cheerios, Häagen-Dazs and Green Giant. The fresh dairy activities of General Mills in the US are centred around the Yoplait brand. 

General Mills’ long term strategic plan, in which Yoplait already plays a role as a key brand, is regarded as particularly attractive for Yoplait. This plan aims to strengthen Yoplait’s market position in Western Europe as well as accelerating its international expansion, particularly in emerging markets where General Mills is already present with strong brands such as Häagen-Dazs in China and Pillsbury in India. 

In the proposed transaction, PAI partners will sell its 50% stake in Yoplait on the basis of a 1.6 billion valuation for 100%. Since the acquisition in 2002, PAI partners and Sodiaal have supported Yoplait’s development and defined, alongside the management team led by Lucien Fa, the strategic direction that has enabled the group to become a world leader in fresh dairy products. PAI partners has sought to structure a transaction in which the disposal of its stake in Yoplait would be beneficial to all parties involved, particularly the management and employees of Yoplait and Sodiaal. 

The consultation process with employee representatives is expected to begin shortly. 

François Iches, President of Sodiaal Union and Gérard Budin, President of Sodiaal International, said

“After nine years of profitable growth, a new era will start for Yoplait, with its longstanding partner General Mills. The transaction enables Sodiaal to remain a key stakeholder of Yoplait while respecting the values and people of the company, which are of great importance to Sodiaal, and guaranteeing to the milk producers the value of their production”. 

Lionel Zinsou, President of PAI partners and Frederic Stevenin, Partner and Head of the Consumer Goods team at PAI, said “this offer recognises the work achieved patiently with Yoplait’s team and demonstrates the strategic value of the world’s second brand in fresh dairy products. Yoplait has profoundly evolved and is today in the best condition to begin the next steps of its global development.” 

Lucien Fa, Yoplait’s President, said “General Mills’ interest highlights the strength of Yoplait, its strong brand but also the quality of its employees and its strong growth potential.”