Danone today announced the signing of an agreement to sell its US premium organic dairy business to Platinum Equity, a US-based investment firm. This sale is part of Danone's portfolio review and asset rotation program that the company announced in March 2022 as part of Danone's renewal strategy.
In 2022, it will launch its premium organic dairy business in the US, which includes Horizon Organic and Wallaby, It represents about 3% of Danone's global revenuesIt had a dilutive impact on Danone's comparable sales growth and recurring operating margin. Danone will retain a non-consolidated minority stake in the business. Closing of the transaction is subject to customary conditions.
Antoine de Saint-Afrique, CEO, said: “As part of our Danone renewal strategy, we are committed to reviewing the portfolio and Rotate business assets that were outside of our priority growth areas To drive value creation. Today marks an important milestone in delivering on this commitment while giving Horizon Organic and Wallaby the opportunity to thrive under new leadership. “This sale, once completed, will allow us to continue to focus on our existing portfolio of strong health-focused brands and reinvest in our growth priorities.”
