Jim Cramer on How General Mills' (GIS) Annie's (BNNY) Acquistion Affects Hain Celestial (HAIN) and WhiteWave Foods (WWAV) Stocks

NEW YORK (TheStreet) -- TheStreet's Jim Cramer says General Mills'  (GIS) $820 million all-cash purchase of Annie's  (BNNY) is roiling the whole industry because the former is paying a fortune for a company that has a "very checkered record" in natural and organic execution.

Cramer says this shows how important it is for behemoths like General Mills to have a hand in the natural and organic game. He adds this deal means Hain Celestial  (HAIN) and WhiteWave Foods  (WWAV) are dramatically undervalued.

Cramer notes 17% of Annie's was sold short because the company kept missing the quarter. He continues to tell investors to keep this group in front of them. If WhiteWave and Hain pull back, then they are cheap on a market cap basis ($6 billion and $5 billion, respectively) rather than an earnings basis.

Must Watch: Jim Cramer Says General Mills Paid A Premium to Get Into Organic Game

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

GIS Chart GIS data by YCharts

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE.

If you liked this article you might like

General Mills Thinks Outside the Box; Markets Roar Back -- ICYMI

General Mills Thinks Outside the Box; Markets Roar Back -- ICYMI

Week in Review: Stocks Finish Week Higher as Fed Comments, Deals Front of Mind

Week in Review: Stocks Finish Week Higher as Fed Comments, Deals Front of Mind

General Mills Buys Blue Buffalo for $8 Billion -- Who's Next?

General Mills Buys Blue Buffalo for $8 Billion -- Who's Next?

Did General Mills Pay Too Much for Organic Pet Food?

Did General Mills Pay Too Much for Organic Pet Food?