General Mills Buys Annie’s for $820M

(Minneapolis Star Tribune/MCT) -

General Mills Inc. said Monday it agreed to buy Annie’s Inc., a maker of organic and natural food products, for $820 million in cash.

The deal, announced after the market closed, adds Annie’s products to General Mills’ other organic brand lines, including Cascadian Farm, Larabar and Food Should Taste Good.

Annie’s, based in Berkeley, Calif., had $204 million in sales for its latest fiscal year, completed in March.

Under terms of the deal, General Mills is paying $46 a share, a 37 percent premium over Annie’s closing price of $33.51 on Monday.