NEW YORK (The Deal) -- General Mills (GIS) , the Minneapolis-based food giant, has struck a deal to acquire organic and natural food maker Annie's (BNNY) , famed for its bunny-shaped macaroni and cheese product, for $46 per share in cash, or about $820 million, the companies said Monday after the markets closed.
The acquirer is expected to launch a tender offer for shares of Annie's within 10 days, and the deal is expected to close later in 2014. The news sent shares of Annie's up almost 38% in after hours trading from its close at $33.51 to $46.10. In pre-market trading Tuesday, the stock was trading at $45.85. General Mills' stock, meanwhile, was up 1.31% in after hours trading to $54.51.
The deal not only represents a more than 37% premium to Monday's close, but it is also a 51% premium over Annie's 30-day average closing price of $30.47 as of September 5, the target said.
Watch the video below to get Jim Cramer's thoughts on General Mills' acquisition of Annie's:
With little cash or debt, the $820 million valuation works out to a bunny-hopping high multiple of approximately 27.3 times the nearly $30 million in Ebitda Annie's is expected to generate for the fiscal year ending March 31. It is also roughly 4 times the roughly $200 million in revenue Annie's produced for its fiscal year ended March 31, 2015.