French foods group Danone has bought Promedica, a Polish company specialising in care services for patients at home, as it expands in the profitable Specialised Nutrition market, a source familiar with the deal told Reuters.
The bolt-on acquisition, the terms of which were not disclosed, was sealed on March 31.
It will bring more scale to Danone in Specialised Nutrition in Poland, a country where the group has already a leading position, the source said.
Danone ranks number one in Medical Nutrition in Europe and fourth worldwide.
Staff from Promedica, a profitable company with sales growing at a double-digit rate, will administer Danone products to patients needing tube feeding, the source said.
Read More: Danone CEO Inaugurates New Research And Innovation Centre In Paris
Restructuring Plan
The acquisition comes as Danone, maker of high-end infant formula brands such as Aptamil and Medical Nutrition brands such as Nutricia, has embarked on a restructuring plan that entails investing in worthwhile brands and innovation and disposing of underperforming assets.
Homecare is a growing category as more people suffering from chronic diseases can be treated at home. It is also seen as a cost-efficient alternative to expensive hospital stays.
With 2022 revenue of €8.32 billion, the Specialised Nutrition division comprises 30% of Danone's global revenue.
The division's like-for-like sales growth rate of 10% last year outperformed the group's 7.8%. Its operating profit margin of 21.6% also topped the group's 12.2%.
Read More: Danone Eyes Better Margins As Fourth-Quarter Sales Top Estimates
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