General Mills selling North American yogurt business to French dairies

General Mills announced Thursday that it is selling its North American yogurt business to two French dairies: Lactalis will purchase the U.S. brands, while Sodiaal will take over the Canadian brands.

The deals are valued at $2.1 billion; they are expected to close in 2025, according to General Mills. The company will use the proceeds from the sales to buy back shares of its own stock. It will provide more details when it releases its first-quarter earnings report on Wednesday.

General Mills owns Yoplait, Liberté, Go-Gurt, Oui, Mountain High and more, with manufacturing facilities in Murfreesboro, Tennessee; Reed City, Michigan; and Saint-Hyacinthe, Québec, Canada. Yogurt sales made up about $1.5 billion of General Mills’ fiscal 2024 net sales, Reuters reported.

The Wall Street Journal reported that General Mills is selling the yogurt business so it can focus on higher-margin brands. General Mills began producing and distributing Yolplait in the United States in the late 1970s, and took it over completely in 2021.

General Mills, which is based in Minneapolis, Minnesota, was founded as a flour mill in 1866. It is known for Wheaties cereal, Betty Crocker brands, Bisquick baking mix and Cheerios cereal. It owns more than 100 brands, according to its website.