Multinational food company General Mills, Inc. (GIS) is planning to sell its ready-to-eat meals label Helper and soup brand Progresso for $3 billion, a report published by Bloomberg stated, citing people familiar with the matter.
Headquartered in Minneapolis, the company is engaged in the production and sale of branded consumer foods, including convenient meals, ready-to-eat cereals, snacks, super-premium ice creams, yogurt, baking mixes and ingredients, and refrigerated and frozen dough.
Meanwhile, General Mills’ shares closed nearly 1% down on Thursday at $62.90.
The report said that the food company was taking help from global investment banking firm Goldman Sachs Group, Inc. (GS) on the potential sale, which also includes some of General Mills’ smaller brands.
While Helper offers boxed pasta meals, Progresso sells canned soups, broths and chili. (See Insiders’ Hot Stocks on TipRanks)
The move follows the company’s announcement in March to sell its 51% stake in the European operations of yogurt maker Yoplait to French dairy cooperative Sodiaal. In return, General Mills asked for full ownership of Yoplait’s Canadian business.
Overall, the stock has a Hold consensus rating based on 3 Buys and 5 Holds. The average General Mills price target of $64.89 implies 3.2% upside potential. Shares have gained 6.6% year-to-date.
According to TipRanks’ Smart Score rating system, General Mills scores a 4 out of 10, suggesting that the stock is likely to perform in line with market averages.
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