French food group Danone has signed an agreement to sell its premium organic dairy units in the United States to investment firm Platinum Equity.
The sale of the Horizon Organic and Wallaby businesses is part of the company's portfolio review and asset rotation program the company announced in March 2022, Danone said in a statement, without disclosing the financial details of the deal.
Growth Priorities
'This sale, once completed, will allow us to concentrate further on our current portfolio of strong, health-focused brands and reinvest in our growth priorities,' the company said.
Danone will retain a minority stake in the business, it added.
Danone declined to comment on the deal value, but added that the sale would have an impact on its 2024 financials.
Platinum Equity did not immediately respond to a Reuters request for comment on the deal value of this transaction.
“As part of our Renew Danone strategy, we committed to a portfolio review and asset rotation for businesses that fell outside our priority growth areas of focus to drive value creation," commented Antoine de Saint-Affrique, Danone chief executive.
"Today marks an important milestone in delivering this commitment while giving the Horizon Organic and Wallaby businesses the opportunity to thrive under new leadership."
Strategic Options
The Paris-based company said in January last year that it was exploring strategic options, including a potential sale, for its organic dairy activity in the U.S.
Danone's organic dairy activity in the U.S. comprised of the Horizon Organic and Wallaby businesses with a portfolio of organic dairy products, including milk, creamers, yogurt, cheese and butter.
It represented approximately 3% of Danone's global revenues and had a dilutive impact on Danone's like-for-like sales growth and recurring operating margin in 2022.
Additional reporting by ESM
