Danone SA DANOY disclosed the agreement to sell its premium organic dairy activity in the U.S. to Platinum Equity, a U.S.-based investment firm, for an undisclosed amount.
In 2022, the U.S. premium organic dairy activity (including Horizon Organic and Wallaby businesses) accounted for about 3% of global revenues and had a dilutive impact on its' like-for-like sales growth and recurring operating margin.
The divestiture is part of Danone's portfolio review and asset rotation program, which was announced in March 2022, as part of its Renew Danone strategy.
Antoine de Saint-Affrique, Chief Executive Officer said, "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."
"Today marks an important milestone in delivering this commitment while giving the Horizon Organic and Wallaby businesses the opportunity to thrive under new leadership. 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."
Adam Cooper, Platinum Equity Managing Director, stated, "Premium offerings, including organic and value-added products, are driving the growth in the dairy milk category. Horizon Organic is a pioneer of that segment and is in position to continue capitalizing on and accelerating the trend."
Post-deal closure, Danone will retain a non-consolidated minority stake in the business.
Price Action: DANOY shares closed higher by 0.15% at $12.95 on Friday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
