General Mills in agreement to buy organic snack maker Annie’s
General Mills Inc. has agreed to acquire Annie’s Inc., one of the largest producers of natural and organic branded food, in a deal worth $820 million.
The deal announced Monday comes as sales of organic food continue to grow rapidly in the United States, jumping 11.5% to $35.1 billion last year, according to the Organic Trade Assn.
“This acquisition will significantly expand our presence in the U.S. branded organic and natural foods industry, where sales have been growing at a 12% compound rate over the last 10 years,” Jeff Harmening, General Mills’ executive vice president and chief operating officer for U.S. retail said in a prepared statement. “Annie’s competes in a number of attractive food categories, with particular strength in convenient meals and snacks -- two of General Mills’ priority platforms.”
Headquartered in Berkeley, Annie’s was founded in 1989 and sells more than 145 different products in the United States and Canada. It’s best known for its line of macaroni and cheese and its brightly colored packaging. The company was listed on the New York Stock Exchange in 2012 and it registered net sales of $204 million in its latest fiscal year, which ended in March.
General Mills said it will pay $46 per share for Annie’s, which ended the day trading for $33.51 Monday.
Annie’s will join the General Mill’s existing lineup for organic and natural brands, which includes Cascadian Farm and Muir Glen.
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