Danone Announces Sale of Premium U.S. Organic Dairy Units to Platinum Equity
French food group Danone confirmed its agreement to sell its prized organic dairy divisions, Horizon Organic and Wallaby, in the United States to investment firm Platinum Equity. The move is part of Danone’s ongoing portfolio review and asset rotation strategy initiated in March 2022. While the financial specifics remain undisclosed, Danone’s CEO, Antoine de Saint-Affrique, highlighted that this divestiture aligns with their aim to refocus on robust, health-centric brands and reinvest in core growth areas.
Although Danone will maintain a minority stake in the business, the company anticipates an impact on its 2024 financials. This strategic step follows Danone’s earlier exploration, announced in January of the prior year, of potential options, including a sale, for its U.S.-based organic dairy operations. The divested organic dairy segment, consisting of Horizon Organic and Wallaby, encompassed a spectrum of organic dairy products like milk, creamers, yogurt, cheese, and butter.
This branch accounted for about 3% of Danone’s global revenues and had a dilutive effect on the company’s like-for-like sales growth and recurring operating margin in 2022.