Danone Agrees to Sell Subsidiary; Creates DanoneWave for Health-Focused Brands in WhiteWave Deal
PARIS, FRANCE - Last week, French company Danone completed the acquisition of WhiteWave Foods Co. and announced the formation of Strategic Business Unit, DanoneWave, to handle its North American business.
According to source Impact Alpha, Danone Dairy and WhiteWave’s health-centric brands, such as Earthbound Farms, Horizon Organic, and Silk will operate under DanoneWave, in one of the largest “public benefit corporations” to date.
The deal, announced in July, was held up by the Antitrust Division until Danone agreed to divest one of its U.S. dairy subsidiaries, Stonyfield Farms, which the company announced its plans to sell on March 31 resulting in approval. The total acquisition was for $12.5 billion, according to source Biz West.
"I am thrilled that we have completed the acquisition of WhiteWave,” said Emmanuel Faber, CEO of Danone, according to a press release. “Danone and WhiteWave are a perfect match to build a global leader leveraging consumer trends and expectations for healthier and more sustainable eating and drinking choices." He commented further that the new management team and extensive work by integration teams are setting the company up for future success.
The new unit, DanoneWave, will operate under the leadership of Lorna Davis, who has been appointed Chief Executive Officer of the combined entity. As we previously reported, this acquisition will double the size of Danone’s U.S. footprint, from 12 percent of its portfolio to 22 percent.
The company will present its Q1 2017 financial report on April 20, at which Danone will update its full year guidance following the acquisition of WhiteWave.
