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

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