Annies Inc. To Be Acquired For $46/Share By General Mills

shares hopped higher on news it will be acquired for $46 a share by

The Berkley, Calif., boxed mac-and-cheese maker said General Mills will launch a tender offer within 10 business days to purchase all outstanding shares of Annie's in a transaction valued at $820 million. Annies' shares are down more than 22 percent in the year to date with its margins pressured by rising commodity costs. The deal with General Mills equals a 51 percent premium over Annie's 30-day average closing price of $30.47 as of September 5. Annies launched its flagship macaroni and cheese product in 1989 but now sells more than 140 varieties of branded 140 packaged foods. Annies traded recently in Monday's extended session at $45.98 a share, up $37 percent.