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Acquisition And Divestitures
 12 Months Ended
May 28, 2023
Acquisition And Divestitures [Abstract]  
Acquisition And Divestitures
NOTE 3. ACQUISITION AND DIVESTITURES
During
 
the first
 
quarter
 
of fiscal
 
2023,
 
we
 
acquired
 
TNT Crust,
 
a
 
manufacturer
 
of high-quality
 
frozen pizza
 
crusts
 
for
 
regional
 
and
national pizza
 
chains, foodservice
 
distributors, and
 
retail outlets,
 
for a
 
purchase price
 
of $
253.0
 
million. We
 
financed the
 
transaction
with U.S. commercial paper.
 
We consolidated
 
the TNT Crust business into
 
our Consolidated Balance
 
Sheets and recorded goodwill
 
of
$
156.8
 
million. The
 
goodwill is
 
included in
 
the North
 
America Foodservice
 
segment and
 
is not
 
deductible for
 
tax purposes.
 
The pro
forma
 
effects
 
of
 
this
 
acquisition
 
were
 
not
 
material.
 
We
 
have
 
conducted
 
a
 
preliminary
 
assessment
 
of
 
the
 
fair
 
value
 
of
 
the
 
acquired
assets
 
and
 
liabilities
 
of
 
the
 
TNT
 
Crust
 
business
 
and
 
will
 
continue
 
to
 
review
 
these
 
items
 
during
 
the
 
measurement
 
period.
 
If
 
new
information is obtained
 
about facts and circumstances
 
that existed at the
 
acquisition date, the
 
acquisition accounting
 
will be revised to
reflect the resulting adjustments to
 
current estimates of these items.
 
The consolidated results of the
 
TNT Crust business are reported
 
in
our North America Foodservice segment on a one-month lag.
 
During the
 
first quarter
 
of fiscal
 
2023,
 
we completed
 
the sale
 
of our
 
Helper main
 
meals and
 
Suddenly
 
Salad side
 
dishes business
 
to
Eagle Family Foods Group for $
606.8
 
million and recorded a pre-tax gain of $
442.2
 
million.
 
In fiscal 2022, we sold our European dough businesses and recorded
 
a net pre-tax gain on sale of $
30.4
 
million.
 
During
 
the
 
third
 
quarter
 
of
 
fiscal
 
2022,
 
we
 
sold
 
our
 
interests
 
in
 
Yoplait
 
SAS,
 
Yoplait
 
Marques
 
SNC,
 
and
 
Liberté
 
Marques
 
Sàrl
 
to
Sodiaal International (Sodiaal) in
 
exchange for Sodiaal’s
 
interest in our Canadian yogurt business, a
 
modified agreement for the use of
Yoplait
 
and
Liberté
brands in the
 
United States and
 
Canada, and cash.
 
We
 
recorded a net
 
pre-tax gain of
 
$
163.7
 
million on the
 
sale of
these businesses.
During
 
the
 
first
 
quarter
 
of
 
fiscal
 
2022,
 
we
 
acquired
 
Tyson
 
Foods’
 
pet
 
treats
 
business
 
for
 
$
1.2
 
billion
 
in
 
cash.
 
We
 
financed
 
the
transaction
 
with
 
a
 
combination
 
of
 
cash
 
on
 
hand
 
and
 
short-term
 
debt.
 
We
 
consolidated
 
Tyson
 
Foods’
 
pet
 
treats
 
business
 
into
 
our
Consolidated
 
Balance
 
Sheets
 
and
 
recorded
 
goodwill
 
of
 
$
762.3
 
million,
 
indefinite-lived
 
intangible
 
assets
 
for
 
the
Nudges
,
Top
Chews
, and
True
 
Chews
 
brands
 
totaling
 
$
330.0
 
million
 
in
 
aggregate,
 
and
 
a
 
finite-lived
 
customer
 
relationship
 
asset
 
of
 
$
40.0
 
million.
The goodwill is included in
 
the Pet reporting unit and is
 
deductible for tax purposes. The
 
pro forma effects of
 
this acquisition were not
material.
 
During
 
the
 
fourth
 
quarter
 
of
 
fiscal
 
2021,
 
we
 
recorded
 
a
 
pre-tax
 
loss
 
of
 
$
53.5
 
million
 
related
 
to
 
the
 
sale
 
of
 
our
 
Laticínios
 
Carolina
business in Brazil.