WASHINGTON (dpa-AFX) - General Mills, Inc. (GIS) said Monday that it has agreed to buy Annie's, Inc. (BNNY), a producer of branded organic and natural food products, for $46.00 per share in cash or about $820 million.
Annie's, which had net sales of $204 million in its latest fiscal year, will join General Mills' U.S. natural and organic products portfolio, which includes the Cascadian Farm, Muir Glen, LARABAR and Food Should Taste Good brands. Net sales for those General Mills brands totaled about $330 million in its latest fiscal year.
The Annie's Board of Directors has unanimously recommended that Annie's stockholders accept the General Mills offer. General Mills will launch a tender offer within ten business days to purchase all outstanding shares of Annie's.
General Mills plans to fund the acquisition through available credit.
The deal, which is expected to close later in calendar 2014, is expected to be accretive to General Mills earnings in the first 12 months following completion, excluding certain purchase accounting adjustments, and transaction and integration expenses.
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