By Adria Calatayud and Helena Smolak


Danone will sell its Horizon Organic and Wallaby organic-dairy businesses in the U.S. to investment firm Platinum Equity for an undisclosed sum, pruning its portfolio in a bid to boost sales growth and profitability.

The French producer of yoghurts, bottled water and infant-nutrition products said Tuesday that the deal is part of a portfolio review launched in 2022 shortly after Antoine de Saint-Affrique became chief executive.

Danone acquired the Horizon Organic and Wallaby brands as part of its $10.4 billion deal for U.S. organic-foods producer WhiteWave Foods, which was completed in 2017.

In January last year, the company said it was considering a potential sale of its underperforming product portfolio, including its organic dairy activity in the U.S.

The brands--which include dairy products such as creamers & whiteners, cheese, and butter in addition to milk and yogurt--represented about 3% of the Danone's global revenue and had a dilutive impact on its like-for-like sales growth and recurring operating margin, it said. The maker of Activia yogurt and Evian water reported global sales of 27.66 billion euros ($30.56 billion) in 2022.

"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's CEO said.

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

Platinum Equity said separately that 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.

Growth in the dairy-milk category is being driven by premium offerings such as organic and value-added products with Horizon Organic being a pioneer in this segment, Platinum Equity Managing Director Adam Cooper said.


Write to Adria Calatayud at and Helena Smolak at


(END) Dow Jones Newswires

January 02, 2024 05:17 ET (10:17 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.
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