Pillsbury Stock Price After Stock Market Crash of 1929
In 1869, Charles A. Pillsbury established the Pillsbury Flour Mills Company. Pillsbury and Company was founded in 1872 by Charles Alfred Pillsbury and his uncle John Sargent Pillsbury. The company was the first in the United States to use steel rollers for processing grain. The finished product required transportation, so the Pillsbury’s assisted in funding railroad development in Minnesota.
1889 — Pillsbury and its five mills on the banks of the Mississippi River were purchased by a British company. The company also tried to purchase and merge with the Washburn Crosby Company (a precursor of “General Mills“), but the strong rivalry prevented any merger from happening at the time.
1923 — the “Pillsbury” family reacquired the Pillsbury-Washburn Flour Mills Company, Ltd. which subsequently was incorporated in 1935 as Pillsbury Flour Mills Company.
By October 27, 1929 Pillsbury was trading at $41.875 per share when the first wave of selling on “Black Monday”, October 28, 1929 brought the shares down ($11.875) to close at $30.00 per share on the day. By August 11, 1932, Pillsbury was trading at $16.00 and hit a 1932 low of $9.75 per share.
1965 — The “Pillsbury Doughboy” makes his first appearance at Pillsbury.
1990s — Pillsbury was generating just 9 percent growth in return on investment. Indeed, its U.S. sales were falling, which prompted Diageo management to put Pillsbury up for sale.
In July 2000, Diageo announced that General Mills Inc. “Stock Symbol: GIS) had made a play for Pillsbury. For Diageo, the sale would mark its exit from the food business, leaving it well positioned to pursue additional beer and liquor brand purchases. General Mills stood to gain handsomely from the sale as well. By adding Pillsbury to its arsenal, the company would nearly double in size, become the third-largest food concern in North America, and stand as the fifth-largest food company in the world.
Both General Mills and Pillsbury were forced to sell off certain brands in order to gain FTC approval.
Tags: 1929 Stock Market Crash, Black Monday, Charles A Pillsbury, Crash of 29, Food, FTC, General Mills, GIS, John Sargent Pillsbury, Minnesota, October 27 1929, October 28 1929, October 29 1929, Pillsbury, Pillsbury and Company, Pillsbury Doughboy, Pillsbury Flour Mills Company, Pillsbury-Washburn Flour Mills Company, Railroad, Stock Symbol, Washburn Crosby Company