Danone Sells Horizon Organic, Wallaby U.S. Businesses to Platinum Equity

By Adria Calatayud

Danone said it would sell its Horizon Organic and Wallaby organic-dairy businesses in the U.S. to investment firm Platinum Equity for an undisclosed sum.

The French producer of yoghurts, bottled water and infant-nutrition products said Tuesday that the sale agreement is part of a portfolio review launched in 2022. The brands represented about 3% of the group's global revenue and had a dilutive impact on its like-for-like sales growth and recurring operating margin, Danone said.

"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," Danone Chief Executive Antoine de Saint-Affrique said.

Platinum Equity separately said the brands will benefit from its carve-out experience and operational expertise. Its portfolio includes cookie maker Biscuit International, wine producer Fantini Group Vini and seafood provider Iberconsa.

Danone said it would retain a minority stake that won't be consolidated into its results after completing the sale, which remains subject to customary conditions.

Write to Adria Calatayud at [e-mail]

(END) Dow Jones Newswires

January 02, 2024 01:25 ET (06:25 GMT)

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