The packaged-food giant is considering selling some of its brands according to a report from Bloomberg. The two brands under review for sale are its Progresso soup and Hamburger Helper brands.
GIS acquired Progresso in 2001 when it bought Pillsbury in a $10.4 billion deal. Helper was launched in the 1970s. The brand’s products allowed consumers to make large meals by providing rice or pasta with seasoning. All you have to do is add the meat making it convenient for consumers.
Bloomberg said that the sale of these two brands could bring in $3 billion for GIS. GIS did not comment on the matter, according to Bloomberg. If the sale were to go through, GIS would likely reinvest the proceeds in its core operations or reward shareholders through buybacks.
One area it could invest in is its expanding pet business. GIS agreed to buy pet brands, Nudges, Top Chews, and True Chews brands in May for $1.2 billion from Tyson Food (TSN). And in 2018, the company acquired premium pet food brand, Blue Buffalo, for $8 billion. This is a high-growth area for GIS.
The move comes months after General Mills announced the sale of its majority stake in the European operations of Yoplait to French dairy cooperative Sodiaal in exchange for full ownership of the yogurt maker’s Canadian business.
Progresso, which General Mills acquired in 2001 when it bought Pillsbury, offers canned soups, broths and chili, while Helper sells boxed pasta meals.
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