Tomahawk, WI 09/09/2014 (Basicsmedia) – General Mills, Inc. (NYSE:GIS) is on an acquisition drive after announcing plans to acquire the largest producer of natural and organic branded food, Annie’s Inc. (NYSE:BNNY) according to CNBC’s Courtney Reagan.

“[…] General Mills announcing it is buying Annie’s for $46 per share in cash for a total of $820 million the deal is expected to close later in this calendar year. The transaction has apparently unanimously been recommended to Annie’s shareholders except this offer,” said Mrs. Reagan.

General Mills share price offer of $46 represents a 51% premium on Annie’s 30 days moving average as of Friday last week. Annie’s stock responded well to the news spiking in Monday trading session by highs of 37% in intraday trading although the momentum cooled down, and the company closed at a low of $33.51. General Mills, Inc. (NYSE:GIS) bid highlights how big companies are spending their cash on homespun and healthful companies that have sustainable growth potential going forward.

Consumer perception about products has been changing with most of them nowadays preferring simple natural and organic ingredients. General Mills, Inc. (NYSE:GIS) plans to use Annie’s Inc. (NYSE:BNNY) on its drive to further expand in America’s markets especially in the branded organic and natural foods space. General Mills looks to have been attracted to Annie on the fact that the space has been growing at a 12% compound rate over the past ten years.

“This is a name that I think can continue to move higher I think the entire space will be looking at General Mills these guys are also in the middle of a place where some people think that the can also be a target,” said Michael Murphy.

It awaits to be seen if Annie’s Inc. (NYSE:BNNY) will accept General Mills, Inc. (NYSE:GIS) offer considering both companies hold different opinions on genetically modified foods. Annie has over the years reiterated that it will always stay true to its values of providing healthy foods to its customers. General Mills, on the other hand, has vehemently opposed petition to have genetically modified foods labelled.

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