This strategic decision aligns seamlessly with Danone’s ongoing portfolio review and asset rotation program, which was initially unveiled in March 2022. While specific financial details of the transaction remain confidential, the sale of Horizon Organic and Wallaby businesses will empower Danone to intensify its focus on its existing portfolio of robust, health-centric brands and allocate resources to its key growth priorities, as highlighted by Danone’s CEO, Antoine de Saint-Affrique.
It’s important to note that Danone will maintain a minority stake in the business, emphasizing their continued involvement in the sector. Although the exact financial terms are undisclosed, Danone has indicated that it will impact their financial performance for the year 2024.
Platinum Equity, a leading private equity firm, has yet to comment on the transaction’s deal value in response to Reuters’ request. Notably, Danone, headquartered in Paris, had previously announced its exploration of strategic options, including a potential sale, for its organic dairy operations in the U.S.
Danone’s U.S. organic dairy operations encompass the Horizon Organic and Wallaby businesses, offering a diverse range of organic dairy products, including milk, creamers, yogurt, cheese, and butter. These operations constituted approximately 3% of Danone’s global revenues and had a dilutive impact on the company’s like-for-like sales growth and recurring operating margin in 2022.
For more updates on this transformative development, stay tuned to ihrmagazine.com.
