May 24 General Mills Inc agreed to buy
Brazilian food company Yoki Alimentos SA for about 1.75 billion
Brazilian reais ($857 million) as it seeks a greater foothold in
The addition of Yoki -- which sells more than 600 items
under nine brands across Brazil, including Yoki and Kitano
branded flours and other basic foods, snacks, side dishes and
seasonings -- will more than double General Mills' annual sales
in Latin America to nearly $1 billion.
Like most food and beverage companies, General Mills is
trying to take advantage of growth in developing countries to
offset slower growth in mature markets. The company acquired the
Yoplait International yogurt business in 2011.
General Mills, which also owns Progresso soups, Cheerios
cereal and Haagen-Dazs ice cream, said on Thursday that in the
Yoki deal it will assume 200 million reais ($98 million) of
It sees the deal closing in the first half of fiscal 2013,
which begins May 28.
General Mills shares rose 34 cents, or 0.9 percent, to
$38.93 in morning trade on the New York Stock Exchange.