General Mills to Acquire Brazilian Food Maker Yoki

MINNEAPOLISGeneral Mills signed a definitive agreement to acquire Yoki Alimentos S.A., a privately-held food company headquartered in Sao Bernardo do Campo, Brazil, a move that will help grow General Mills international business. Terms of the deal, which is expected to close by first half of its 2013 fiscal year pending customary closing conditions, were not disclosed.

Yoki is a family-owned company that was established in 1960. Its extensive portfolio includes Yoki and Kitano branded flours and other basic foods, popcorn, side dishes, convenience meals, soups, seasonings, grains and beans. It also markets Yokitos snacks for children, Lin Tea products and a line of ingredients under the Mais Vita brand.

The company employs more than 5,000 people, and its operating infrastructure in Brazil includes several manufacturing plants and national retail distribution. In 2011, the company reported US $540.9 million in sales.

Commenting on the announcement, Chris OLeary, General Mills Executive Vice President and Chief Operating Officer, International, said: We are delighted to add Yokis talented people and strong brands to General Mills growing international business. Yoki adds key capabilities and geographic scale that will accelerate our growth in Brazil. We plan to focus on building the strong Yoki and Kitano product portfolio, expanding our current Haagen-Dazs and Nature Valley businesses in Brazil, and introducing additional General Mills brands in this important market over time."

As one of the biggest and fastest-growing economies in the world, Brazil is an attractive consumer market. A majority of its 200 million people now belong to the middle class and domestic consumption has become an important economic growth driver. General Mills international operations have been growing rapidly in recent years. Fiscal 2012 international segment net sales are expected to exceed US $4 billion, including sales from the Yoplait International yogurt business acquired July 1, 2011. The addition of Yoki will more than double General Mills annual sales in Latin America to nearly US $1 billion.