Your hipster mac and cheese is no more: Annie's is going mainstream. General Mills will acquire Annie's for $46 a share, for a total $820 million. The price being paid is at a 51 percent premium. Stocks were up about 37 percent after hours for Annie's.
CEO of Annie's John Foraker had this to say,
We are excited about this strategic combination, which will enable Annie's to expand the reach and breadth of our high quality, great tasting organic and natural products, provide new opportunities for our employees, realize greater efficiencies in our operations, and maximize value for our stockholders. Powerful consumer shifts toward products with simple, organic and natural ingredients from companies that share consumers' core values show no signs of letting up. Partnering with a company of General Mills' scale and resources will strengthen our position at the forefront of this trend, enabling us to more rapidly and efficiently expand into new channels and product lines in a rapidly evolving industry environment."
The statement from Annie's indicates their recipe and use of organic, natural ingredients will not change under GM ownership.