Annies Inc (BNNY) shares are trading 37.24% higher to $45.97 in Tuesday’s pre-market trade in reaction to its acquisition by one of the world’s leading food companies General Mills (GIS) for $46 per share in cash, or about $820 million. The transaction for Berkeley, California-based organic food manufacturer represents an approximately 37 percent premium over Monday’s closing price.
“This acquisition will significantly expand our presence in the U.S. branded organic and natural foods industry, where sales have been growing at a 12 percent compound rate over the last 10 years,” said in a statement General Mills’ executive vice president and COO Jeff Harmening. “Annie’s competes in a number of attractive food categories, with particular strength in convenient meals and snacks — two of General Mills’ priority platforms.”
Annie’s board of directors unanimously supported the sale, which is expected to close later this year.
Founded in 1989 and going public in March 2012 at $19 per share, Annie’s has become well-known for producing and marketing natural and organic food products. The company, which markets more than 145 products comprising meals, snacks, dressings and condiments, is present in more than 35,000 retail locations in the United States and Canada. Annie’s reported $204.1 million in net sales during its latest fiscal year, which ended in March.