General Mills acquires Annie’s for $820m

US-based General Mills will acquire Annie’s, a producer of branded organic and natural food products, for an estimated $820m.

As part of the agreement signed between the two companies, General Mills will acquire Annie’s for $46 per share in cash.

General Mills US retail executive vice president and chief operating officer Jeff Harmening said, "This acquisition will significantly expand our presence in the US branded organic and natural foods industry, where sales have been growing at a 12% compound rate over the last ten years.

"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."

The Annie’s board of directors has unanimously recommended that Annie’s stockholders accept the General Mills offer.

A tender offer will be launched within ten business days to purchase all outstanding shares of Annie’s. The transaction is expected to close later in 2014.

Headquartered in California, Annie’s manufactures more than 145 products and is present in more than 35,000 retail locations in the US and Canada.