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News > Deals
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Pillsbury buy completed
graphic October 31, 2001: 7:34 p.m. ET

General Mills purchases unit from Diageo for $5.9 billion in revised deal.
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  • Diageo sells Pillsbury unit to General Mills for $10.5B - July 17, 2000
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    NEW YORK (CNNmoney) - General Mills on Wednesday completed its $5.9 billion buy of Pillsbury from Diageo PLC, ending a 15-month process to acquire the food company.

    Revised terms of the deal call for Diageo to receive 134 million shares at $44 each, valuing the transaction at $5.9 billion. The purchase also includes $4.5 billion in cash and assumed debt, totaling $10.4 billion.

    Diageo, as part of the deal, may also receive $670 million in whole or in part, 18 months from the close, General Mills said.

    Last summer, General Mills Inc. agreed to buy Diageo PLC's Pillsbury unit for $10.5 billion in stock and assumed debt. The Federal Trade Commission on Oct. 23 took no action on the merger, which allowed the purchase to go through.

    Diageo (DEO: up $0.10 to $40.85, Research, Estimates) was to receive originally 141 million shares of General Mills shares totaling $5.4 billion in stock. Minneapolis-based General Mills (GIS: up $0.93 to $45.92, Research, Estimates) was also to assume $5.1 billion in debt.

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    The revised deal includes a standstill provision that precludes Diageo from buying more shares in General Mills for a 20-year period following the close or for three years following the date that Diageo owns less than 5 percent of GM's outstanding shares, whichever is earlier.

    As long as Diageo owns 50 percent of the 134 million shares it has received, it can designate two persons to General Mills Board, the company said.

    Evercore Partners and Merrill Lynch served as financial advisers to General Mills while UBS Warburg and Green Hill & Co. advised Diageo. graphic

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    Diageo sells Pillsbury unit to General Mills for $10.5B - July 17, 2000





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    Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.

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