French company Danone announced that it will be selling its Horizon Organic and Wallaby organic-dairy businesses in the U.S. to investment firm Platinum Equity.
Danone revealed that it has entered into a sale agreement with Platinum Equity, as part of its ongoing portfolio review initiated in 2022. The financial terms of the deal were not disclosed.
Both Horizon Organic and Wallaby brands accounted for approximately 3% of Danone’s global revenue. However, they had a dilutive impact on the company’s like-for-like sales growth and recurring operating margin.
Danone’s CEO, Antoine de Saint-Affrique, emphasized that this divestment will enable the company to focus on its existing portfolio of robust and health-focused brands. It will also provide an opportunity to reinvest in the company’s growth priorities moving forward.
Platinum Equity, a seasoned investment firm with a diverse portfolio, is bullish on the potential of the acquired brands. The firm believes that its carve-out experience and operational expertise will contribute to the future success of Horizon Organic and Wallaby in the market. Some of Platinum Equity’s existing investments include Biscuit International, Fantini Group Vini, and Iberconsa.
Following the completion of the sale, Danone will retain a minority stake in the businesses. However, this stake will not be consolidated into Danone’s financial results.
The sale is still subject to customary closing conditions.
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