PARIS (Reuters) – Danone has bought Promedica, a Polish company specializing in home medical nutrition, as the French food group expands further into this profitable segment, a source familiar with the deal told Reuters on Tuesday.

This targeted acquisition, the terms of which were not disclosed, was sealed on March 31, the source said.

The acquisition of Promedica will allow the group to continue to develop in Poland, an important market for Danone, she added.

Danone is number one in medical nutrition in Europe and fourth worldwide.

“Health specialists” from Promedica, a company with double-digit sales growth, will administer Danone products to patients requiring enteral nutrition, the source said.

This acquisition comes as Danone, maker of high-end infant formula such as Aptamil or medical nutrition brands such as Nutricia, has embarked on a recovery plan that involves investing in promising brands and get rid of underperforming assets.

Home care is a growing category as more people with chronic conditions can be treated at home. They are also considered a cost-effective alternative to expensive hospital stays.

With a turnover of 8.319 billion euros in 2022, the specialized nutrition division generated 30% of the group’s total turnover. Its operating margin, of 21.6%, exceeds that of the group at 12.2%.

(Report Dominique Vidalon; Kate Entringer, edited by Blandine Hénault)

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