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Updated January 2nd, 2024 at 13:44 IST

Food product corporation Danone to sell US organic dairy units to Platinum Equity

The sale of the Horizon Organic and Wallaby businesses is part of the firm's portfolio review and asset rotation program the company announced in March 2022

Business Desk
 Danone
Danone | Image: danone.com
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The French multinational-food product corporation Danone announced on Tuesday that it 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 firm'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.

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CEO of Danone, Antoine de Saint-Affrique, said: "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."

Danone will retain a minority stake in the business, the compan informed, while adding that the sale would have an impact on its 2024 financials.

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The Euronext-listed firm said in January last year that it was exploring strategic options, including a potential sale, for its organic dairy activity in the US.

The Danone's organic dairy activity in the US comprised of the Horizon Organic and Wallaby businesses with a portfolio of organic dairy products, including milk, creamers, yogurt, cheese and butter.

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Approximately it represents 3 per cent of Danone's global revenues and had a dilutive impact on Danone's like-for-like sales growth and recurring operating margin in 2022.

(With Reuters Inputs)

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Published January 2nd, 2024 at 13:44 IST

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