The closing on U.S. Foodservice /Alliant was not the only action in November. This month also saw completions of two significant deals in the manufacturer community: International Multifoods Corp., Minneapolis, has completed the acquisition from General Mills of the Pillsbury desserts and specialty products businesses, for $304.5 million in cash. 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. For Multifoods, the lines are expected to add approximately $500 million in annual net sales.
The spinoff of portions of Pillsbury to Multifoods went forward after Minneapolis-based General Mills completed its own acquisition of Pillsbury. The balance of Pillsbury business remaining is expected to quadruple the size of General Mills' foodservice volume, for a total of $1.7 billion in sales.
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