BofA raised the firm’s price target on General Mills to $75 from $68 and keeps a Neutral rating on the shares. General Mills has announced that it entered into a definitive agreement to sell its North American Yogurt business for a total consideration of $2.1B. Lactalis will be acquiring the U.S. business, while Sodiaal will be acquiring the Canadian business. General Mills estimates the transaction to be about 3% dilutive to earnings in year 1 following the close, with proceeds net of tax leakage and one-time costs to be used for share repurchases, the firm notes. BofA points out that divesting the asset allows the company to focus on its brands that have better margins and growth potential longer-term.
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