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MINNEAPOLIS - International Multifoods Corp. announced on Tuesday that it has completed the acquisition from General Mills of the Pillsbury desserts and specialty products businesses. The company paid about $304.5 million in cash for the businesses, which are expected to add approximately $500 million in annual net sales.
Under terms of the final agreement, Multifoods also will purchase General Mills' Toledo, Ohio, plant for approximately $11.5 million, which will be paid to General Mills after the facility is converted to produce Pillsbury baking mixes. The conversion process, which includes cost and quality guarantees, will be undertaken at General Mills' expense and completed within 12 months. Total consideration for all assets is $316 million.
The acquisition, first announced in February and subsequently amended, adds to Multifoods' portfolio the Pillsbury brand of consumer baking mixes, flour and ready-to-spread frosting, as well as the Hungry Jack, Martha White, Pet, Farmhouse, Softasilk, Robin Hood, Red Band and La Pina brands. The company said that the acquisition strengthens Multifoods' existing market position in North American grain-based foods, provides immediate size and scale in the U.S. retail baking aisle, improves profitability and significantly increases cash flow.