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Annie’s Homegrown, the organic food company known for its mac and cheese and earthy vibe, is joining the General Mills empire. General Mills, whose stable of brands includes Pillsbury, Cheerios, Haagen-Dazs and Nature Valley, said on Monday that it had agreed to buy Annie’s for about $820 million in cash, in a bet on shoppers’ continued demand for natural and organic foods.
originally posted by: rickymouse
Darn, now I don't want to eat Annies anymore. I don't trust General Mills, they will use any loophole to save a penny. There is a lot of chemistry that is legally organic but it isn't really organic. They will probably stretch it to the max.
Oh well, even organic Mac and Cheese isn't really good for us anyway, it is a treat that we can occasionally consume.
originally posted by: eisegesis
This is happening with some craft beer makers as well. They are either selling their name and losing the title of "craft" due to not being independently owed anymore.
I felt a little bummed out too when Burt's Bees was bought by Clorox. I still think they sell some decent stuff. The core products haven't changed much, just an addition of new hip product lines with fancy names and less organic ingredients.
I still hope I can find my Annie's at Ocean State Job Lot. They carry some organic foods at good prices. I was so happy to see Annie's mac and cheese as well as Bob's Red Mill stuff. Mac and cheese comes after bacon you know...
originally posted by: kosmicjack
Bummer.
But did they get "bought up" or did they really just simply sell out.
originally posted by: WhiteAlice
originally posted by: kosmicjack
Bummer.
But did they get "bought up" or did they really just simply sell out.
Bought up, sell out...pretty much the same thing technically. I like how NY Times mentioned that it was for $820 million in cash. Now we know what a successfully competitive product line is going for these days...in cash no less.
More often, one company indirectly purchases another company and allows the target company to call it a merger in order to maintain its reputation. When an acquisition occurs in this way, the purchasing company can acquire the target company by either using all-stock, all-cash, or a combination of both. When a larger company purchases a smaller company with all cash, there is no change to the equity portion of the parent company's balance sheet. The parent company has simply purchased a majority of the common shares outstanding.
originally posted by: kosmicjack
a reply to: WhiteAlice
Well, the difference being one is voluntary...the other is forced due to cash flow issues.
$820 million is no fire sale.