General Mills is selling its European dough business as the company continues to home in on its largest market in North America.
General Mills to sell European dough business
The move follows the sale of its European Yoplait ownership stake this year as the Minnesota food maker consolidates focus in North America.
November 24, 2021 at 3:48PM
The Golden Valley-based food giant will sell its branded and private label dough brands, now sold in Germany, the U.K. and Ireland, to Cerelia. The brands include Jus-Rol and Knack & Back.
Terms of the proposed sale were not disclosed.
The deal, announced Wednesday, comes just months after General Mills sold its European Yoplait business. In return, the company gained full control of the same brand in Canada, effectively ending the company's yogurt enterprise outside North America.
General Mills said at the time the move "increases our focus on the brand platforms that have the greatest growth potential."
Earlier this month, Bloomberg News reported that General Mills is possibly looking to sell its Progresso soup and Hamburger Helper brands, though the company declined to comment.
These divestitures are part of General Mills' new strategy that it says has "clear priorities on where to play — across geographies as well as platforms and brands," the company said Wednesday.
"Internationally, the strategy includes efforts to reshape the company's portfolio for sustainable, profitable growth by increasing its focus on advantaged global platforms, which include Mexican food, super-premium ice cream and snack bars," a General Mills news release said.
Knack & Back is a German-based brand featuring the Pillsbury Doughboy that makes refrigerated tubes of cinnamon rolls, croissants and other premade doughs. Jus-Rol is based in the United Kingdom and sells chilled or frozen pastry doughs.
The deal with Cerelia is expected to close by the middle of next year, pending regulatory approvals.
While General Mills retreats from Europe, Paris-based Cerelia has been expanding into the U.S., with the purchase of US Waffle and Wewalka's North American pizza dough business. The company, owned by private equity firm Ardian, also recently opened a production facility in Ohio.
Health care spending rose by 15%, driven by higher prices. Officials say solutions are needed to prevent Minnesotans from being priced out or delaying care they need.
