(Reuters) – Danone said on Tuesday it had signed an agreement to sell its U.S. organic dairy business to U.S. investment firm Platinum Equity.
The sale of the Horizon Organic and Wallaby activities is part of the portfolio review and the asset rotation program announced in March 2022, Danone said in a press release, without disclosing the financial details of the operation.
“This sale, once completed, will allow us to focus more on our portfolio of strong brands, centered around health and to reinvest in our priority growth segments,” said Danone CEO Antoine de Saint-Affrique. , quoted in the press release.
Danone will retain a minority stake in the U.S. organic dairy business, the company added.
The group declined to comment to Reuters on the value of the transaction, but indicated that the sale would have an impact on its 2024 financial results.
Platinum Equity did not immediately respond to a Reuters request for comment on the transaction amount.
Danone said in January 2023 it was exploring strategic options, including the potential sale of its organic dairy business in the United States.
In 2022, the organic dairy business in the United States, consisting of the Horizon Organic and Wallaby brands, represented approximately 3% of Danone’s total sales.
They had a dilutive impact on the group’s organic sales growth and current operating margin.
(Reporting by Rishabh Jaiswal in Bangalore; With the help of Jyoti Narayan; Nathan Vifflin, edited by Blandine Hénault)
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