General Mills to Sell Pop Secret Popcorn Business to Diamond Foods

MINNEAPOLIS, MINN. — General Mills (NYSE: GIS) today confirmed it has reached a definitive agreement to sell its Pop Secret microwave popcorn business to Diamond Foods, Inc. (NASDAQ: DMND) for approximately $190 million in cash.

General Mills expects to receive cash proceeds of approximately $160 million after transaction-related costs. The company expects to record a one-time gain on the sale in its fiscal 2009 results. The transaction, subject to regulatory approval, is expected to be completed this fall.

Diamond Foods is a leading branded food company specializing in processing, marketing and distributing culinary nuts and snack products under the Diamond® and Emerald® brands.

Pop Secret, introduced in 1985, is the No. 2 player in the $900 million U.S. microwave popcorn category.