A major move occurred in the dairy industry. Danone recently announced that it signed an agreement to sell its organic dairy activity in the United States to Platinum Equity, a U.S.-based investment firm. The company noted that the sale is part of Danone’s portfolio review and asset rotation program, which was announced in March of 2022 under the name Renew Danone.
“As part of our Renew Danone strategy, we committed to a portfolio review and asset rotation for businesses that fell outside our priority growth areas of focus to drive value creation,” remarked Antoine de Saint-Affrique, Chief Executive Officer, in a press release. “Today marks an important milestone in delivering this commitment while giving the Horizon Organic and Wallaby businesses the opportunity to thrive under new leadership. 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.”
In 2022, the U.S. premium organic dairy activity, comprised of the Horizon Organic and Wallaby businesses, represented approximately 3 percent of Danone’s global revenues.
Danone will retain a non-consolidated minority stake in the business. The closing of the transaction is subject to customary conditions.
Deli Market News will continue to report on the latest happenings within the industry, so stay tuned.
