Investment firm Platinum Equity will buy Horizon Organic and Wallaby.

PARIS — Danone announced Tuesday that it has signed an agreement to sell its premium organic dairy activity in the U.S. to Platinum Equity, a U.S.-based investment firm.

The sale is part of Danone’s portfolio review and asset rotation program the company announced in March 2022, as part of its “Renew Danone” strategy.

In 2022, the U.S. premium organic dairy activity, comprised of the Horizon Organic and Wallaby businesses, represented approximately 3% of Danone’s global revenues and had a dilutive impact on Danone’s like-for-like sales growth and recurring operating margin.

Danone will retain a non-consolidated minority stake in the business. The closing of the transaction is subject to customary conditions.

Antoine de Saint-Affrique, chief executive officer, said:

“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. 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.”

Source foodmanufacturing.com