Investors will receive $56.25 a share in cash, Paris-based Danone said in a statement Thursday.
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The deal, which is subject to approval from regulators and WhiteWave’s shareholders, is expected to close by the end of the year. Brands distributed in North America include Silk, So Delicious and Vega plant-based foods and beverages, LAND O LAKES coffee creamers and beverages, and Horizon Organic and Earthbound Farm organic salads and vegetables.
“It will allow us to enhance Danone’s growth profile and reinforce our resilience through a broader platform in North America”, Mr. Faber said. “We will contribute 100 years of research and development into protein fermentation, which will be combined with WhiteWave’s transformation know-how”, Faber said.
“It seems to bear numerous hallmarks of 2007’s Numico acquisition when Danone paid 21.7 times forecast EBITDA”.
Gregg Engles, WhiteWave’s chairman and CEO, will get a seat on Danone’s board of directors. The shares have jumped 22 percent this year to close at $47.43 in NY trading Wednesday.
Growth like that doesn’t come cheap – Danone is paying about 26.2 times earnings before interest, tax, depreciation and amortization for WhiteWave, according to data compiled by Bloomberg. A representative for Danone didn’t immediately return a call seeking comment. After closing, the deal will position Danone as a global leader in consumer health-food brands.
WhiteWave, a provider of organic foods, plant-based alternatives to milk & yogurt, and related products, generated $4 billion in sales in 2015. In joining Danone, WhiteWave will have the opportunity to create its industry-leading growth as part of a larger global company with substantial financial, geographic, and operational resources.
French dairy giant Danone said Thursday it had agreed to buy United States organic foods producer WhiteWave Foods with a view to creating a world leader for organic produce. According to Danone’s management team, the deal will further the company’s progress towards its goal of supporting “healthier and more sustainable” eating habits.
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In recent years, dairy milk’s reputation as nature’s flawless food has suffered as consumers question its nutritional merits as well as the environmental costs and treatment of animals housed at big industrial farms. This acquisition is poised to double Danone’s USA footprint by increasing its North American business from 12 percent of its portfolio to 22 percent.
