General Mills planning to take on some debt for Yoplait purchase

By Jennifer Lanning Drey

Savannah, Ga., May 12 - General Mills, Inc. plans to take on additional debt in connection with its expected acquisition of interests in Yoplait SAS but plans to maintain its BBB+ rating through the process, Don Mulligan, General Mills' chief financial officer, said during a Thursday presentation at the Goldman Sachs Consumer Products Symposium in New York.

In addition to taking on "a little more debt" to fund the acquisition, General Mills plans to use cash from the balance sheet and cash flow over the next year to fund the acquisition, he said.

General Mills announced on March 18 that it had entered into exclusive negotiations with PAI Partners and Sodiaal to purchase interests in Yoplait SAS and affiliated companies for €810 million.

General Mills' binding offer includes a controlling role in the operating company and a 50% interest in the entity that owns Yoplait and related brands.

The company expects the deal to close in the summer, Mulligan said.

"We think Yoplait is a fabulous brand, and yogurt is a fabulous category that has a presence but room to grow in emerging markets as well as many developed markets, and we're looking forward to participating in helping drive that growth," he said.

General Mills is a consumer food company based in Minneapolis.

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