Danone sells Horizon Organic to PE firm
Why it matters: As CPG companies shed assets to focus on higher-growth businesses, there will likely be a flood of sponsor-led deals in food and beverage.
Details: Danone will retain a minority stake in the business.
- "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," CEO Antoine de Saint-Affrique said in a statement.
By the numbers: Danone said that the businesses accounted for about 3% of its global revenue, which equates to nearly €830 million.
Catch up fast: Saint-Affrique said in 2022 that Danone needed to fix its underperforming businesses such as baby food brand Tema, organic dairy business Horizon, Chinese vitamin drink Mizone, and its traditional dairy portfolio.
- If it could not, then they would be sold.
- In early 2023 Horizon and Wallaby were put on the auction block.
Flashback: The Horizon organic milk business was added in 2017 when Danone bought the brand's parent WhiteWave for $12.5 billion.
Danone declined to comment further while Platinum Equity did not immediately respond to a request for comment.