France-based dairy and drinks multinational Danone will sell off its organic yoghurt business Stonyfield to facilitate the $10.4 billion acquisition of organic food producer WhiteWave Foods, according to a report in FoodBev
The move to sell Stonyfield came after US anti-trust authorities are believed to have raised concerns about Danone’s future share of the organic dairy market.
Stonyfield, which produces organic yoghurts, smoothies, frozen yoghurts and packaged milks, generated about $370 million in 2016.
WhiteWave produces organic dairy, plant-based alternatives to milk and yogurt, fresh foods, and coffee creamers, and in 2016 reported sales of $4.2 billion.
“WhiteWave is expected to accelerate Danone’s 2020 profitable growth journey, drive strong value creation and deliver attractive financial benefits, including an above 10% earnings per share accretion based on run-rate synergies”, commented Danone chief executive officer Emmanuel Faber. “Through this perfect match, we will bring together complementary portfolios, including some of the fastest growing, health-focused categories that are strongly aligned with long term consumer trends”.