WASHINGTON (dpa-AFX) - Branded food company General Mills, Inc. (GIS) announced Wednesday that it has agreed to sell its Helper main meals and Suddenly Salad side dishes businesses to Eagle Family Foods Group, a portfolio company of Kelso & Co., in a cash transaction valued at approximately $610 million.
The proposed transaction is expected to close in the first quarter of fiscal 2023, subject to regulatory approval.
The transaction improves General Mills' North America Retail segment's growth profile and allows it to increase its focus on brands and categories where it has the best opportunities to drive profitable growth.
Net sales for the Helper and Suddenly Salad businesses totaled approximately $235 million in fiscal 2021.
The company expects the divestiture to be dilutive to its adjusted earnings per share in the range of approximately 10 to 11 cents in the first 12 months after closing, before factoring in any potential benefit from the use of proceeds from the sale.
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