MINNEAPOLIS - General Mills (NYSE: NYSE:GIS) has finalized its acquisition of Edgard & Cooper, a leading premium pet food brand in Europe. The acquisition aligns with General Mills' Accelerate strategy, which focuses on enhancing its core markets, global platforms, and local brands to foster sustainable growth and deliver value to shareholders.
Edgard & Cooper, founded in 2016 and headquartered in Kortrijk, Belgium, has rapidly become a significant player in the European pet food sector. The brand is known for its natural and sustainable approach to pet food, with estimated retail sales surpassing €100 million in 2023 across 13 markets. The brand's commitment to omnichannel distribution and sustainability has positioned it to provide quality pet food while minimizing environmental impact.
Jon Nudi, Group President of Pet, International, and North America Foodservice at General Mills, expressed enthusiasm for the acquisition, stating that Edgard & Cooper fits perfectly into the company's strategic focus areas. The integration of Edgard & Cooper into General Mills is expected to bolster the mission of delivering premium, natural pet food.
The founders of Edgard & Cooper, Koen Bostoen, Louis Chalabi, and Jürgen Degrande, will continue to lead the brand as a separate operating unit, with financial results incorporated into General Mills' International segment. Bostoen highlighted the opportunity to combine Edgard & Cooper's brand positioning with General Mills' marketing and supply chain resources to accelerate growth.
General Mills, a global food company with iconic brands such as Cheerios, Nature Valley, and Blue Buffalo, reported net sales of $20.1 billion in fiscal 2023. The acquisition of Edgard & Cooper was financed with available cash.
Raymond James & Associates Inc. and White & Case LLP advised General Mills on financial and legal matters, respectively. Morgan Stanley (NYSE:MS) & Co International plc and Linklaters LLP provided exclusive financial and legal advice to Edgard & Cooper.
InvestingPro Insights
As General Mills (NYSE: GIS) fortifies its position in the pet food market with the acquisition of Edgard & Cooper, the company's financial health and strategic moves remain a focal point for investors. Here are some key insights from InvestingPro that may shed light on the company's current financial standing and future prospects:
InvestingPro Data:
- The company's market capitalization stands robust at 39.65 billion USD, reflecting investor confidence in its market position and growth strategies.
- General Mills boasts a Price-to-Earnings (P/E) ratio of 15.96, and an adjusted P/E ratio for the last twelve months as of Q3 2024 at 14.62, indicating a potentially favorable valuation compared to future earnings.
- The dividend yield as of December 2021 was 3.36%, showcasing the company's commitment to returning value to shareholders, which is further confirmed by a dividend growth of 9.26% over the last twelve months as of Q3 2024.
InvestingPro Tips:
1. Management's aggressive share buyback strategy reflects a strong belief in the company's intrinsic value and future performance.
2. The company has a remarkable track record of maintaining dividend payments for 54 consecutive years, emphasizing its reliability and appeal to income-focused investors.
These insights suggest that General Mills is not only expanding its product portfolio but also managing its financial resources effectively to support sustainable growth. For investors looking to delve deeper into the company's performance and strategic outlook, more InvestingPro Tips can be found at https://www.investing.com/pro/GIS. Additionally, by using the coupon code PRONEWS24, investors can receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription, gaining access to a comprehensive list of 7 additional InvestingPro Tips to inform their investment decisions.
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