Monday, September 22, 2014

DADDY WARBUCKS BUYS ANNIES

GMO FIGHTERS ROLLED OVER IN THE CLOVER? NOT YET
Temecula, CA - Having weathered the storm of labeling GMOs from two grassroots movement efforts, Monsanto and those who are fattening America, no matter which side of the protest or brutality line, have nearly completed their Roundup of America lab rats. After paying the cost to be the boss in state governments around the country, plus getting GMO
products passed  through to customers without a real vetting system, putting GMO salmon [farmed] and God didn't Make these Ordinary  little green [Granny Smith, Golden Delicious] apples into the local market, getting a Federal judge to declare Hawaii's no-GMO law unconstitutional, and a fake GMO bill into Congress, the junk food science companies are still taking no chances. But you know, Sports Fans, it's hard to battle a god, even the god of money. Flush with power, fat with greed, the GMA crowd seek to corner the market, again.

Annie's, Inc. (NASDAQ: BNNY) is one of the more prominent natural and organic food companies. It also just came public in 2012. Now we have news that General Mills, Inc. (NYSE: GIS) has stepped up to the plate and announced that it is acquiring Annie's.

This deal is valued at $820 million and it calls for Annie's shareholders to receive $46.00 per share in cash. The transaction consideration represents a 51% premium over Annie's 30-day average closing price of $30.47 as of September 5, 2014. One thing to consider against a $46 share price is that Annie's has a 52-week trading range of $27.86 to $52.38.


Monday's release signaled that this acquisition will enable Annie's to enter a new phase of growth and success while maximizing value for stockholders. Annie's will continue to be headquartered in Berkeley, California, while General Mills is headquartered in Minneapolis, Minnesota.
For a comparison, General Mills had a market cap of $32.8 billion as of the close on Monday. This $820 million may not even register as a line item in the grand scheme of things for costs and dilution. General Mills had a gross profit of over $6.3 billion and a net income applicable to shareholders of $1.824 billion in this last fiscal year.
The companies said in the press release,

"The Annie's Board of Directors has unanimously recommended that Annie's stockholders accept the General Mills offer.  General Mills will launch a tender offer within ten business days to purchase all outstanding shares of Annie's. General Mills' offer will be subject to the tender of a majority of Annie's shares and to certain other customary closing conditions including regulatory approval. The transaction is expected to close later in calendar 2014."

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