• General Mills (NYSE:GIS) lists the strategic reasons for its $8B acquisition of Blue Buffalo Pet Products (NASDAQ:BUFF).
• "The $30 billion U.S. pet food market is generating consistent 3-4% growth and is highly attractive for retailers based on continued market growth, premiumization and subscription-like purchase patterns that drive traffic and repeat purchases."
• "BLUE has one of the strongest brand equities in the pet food market and is the #1 brand in the Wholesome Natural category with retail sales of four-times the next largest Wholesome Natural pet food brand."
• "BLUE is the #1 pet food brand in the pet specialty channel at approximately twice the size of the next largest brand. BLUE is also the #1 pet food brand in the rapidly growing E-Commerce channel, where Blue Buffalo generated over $250 million of net revenues in 2017 growing over 75% versus prior year."
• "BLUE has generated early success in the food, drug and mass channel which, in conjunction with General Mills' capabilities, represents a significant growth opportunity through strengthening BLUE's distribution."
• On the financial end of the deal, General Mills says its pro forma net debt-to-EBITDA ratio is expected to be approximately 4.2X. General Mills maintains that it's committed to maintaining an investment grade rating and expects to deleverage to approximately 3.5xXby the end of fiscal 2020. General Mills also expects to maintain its $0.49/share quarterly dividend and suspend its current share repurchase program while it prioritizes achieving its leverage target.
• GIS -0.36% to $54.75 premarket. BUFF +17.29% to $40.02.
• Previously: General Mills to buy Blue Buffalo for $8B (Feb. 23)作者:
mikeon88 時間: 2018-2-23 21:20
買貴了
作者:
yuanian 時間: 2018-2-24 00:24
難怪今天開盤前GIS股價就一直往下跌^^作者:
Curry 時間: 2018-2-24 06:00
會跌應是因為以下這句:
“halts share repurchases as well of course, while maintaining the dividend”
Finally, shares of General Mills fell nearly 8%. The cereal maker reported fiscal first-quarter results that included only a 1% rise in organic net sales, with acquisitions playing a key role in pushing General Mills' top line higher at a faster 9% pace. With consumer tastes moving away from traditional breakfast foods, General Mills has had to pivot toward areas like its Yoplait yogurt brand. But fierce competition throughout the space is still punishing the food giant, and despite reaffirming its full-year fiscal 2019 guidance in most key areas, General Mills shareholders are still uncertain whether the company behind once-powerhouse brands like Cheerios can return to its former glory.
Gross margin fell 160 bps to 33.6% of sales as cost inflation cut into profitability and one-time accounting charge tied to the Blue Buffalo acquisition factored in.
Adjusted operating profit margin fell 80 basis points to 15.7% of sales during the quarter.