General Mills has announced that it will sell off its Helper and Suddenly Salads brands to Eagle Family Foods Group, a company owned by Kelso & Company. The transaction is expected to close by the first quarter of fiscal year 2023 and is valued at approximately $610 million.
The deal is one made in line with Mills’ Accelerate strategy. Doing this will help the company trim their portfolio in a way that allows them to focus on building the brands that matter the most to customers.
Both brands had a combined net sales figure of $235 million in fiscal year 2021, which may shed light on why Mills decided to cut them. They only represented 1.3% of the company’s net sales last year.
Further details of the cash transaction will be in General Mills’ late June fourth quarter earnings call and will give us some clue as to how they intend to use the earnings from the sale.