Danone Acquires WhiteWave Foods Company For US$12.5 Billion

Friday, July 8th, 2016 | 950 Views

At US$56.25 per share in an all-cash transaction, Danone will acquire the organic foods, plant-based milks and related products provider for approximately US$12.5 billion, with the transaction to close by year end.

WhiteWave generated some US$4 billion in sales in 2015, and possesses a portfolio of a wide range of food and beverage products, with categories focusing on organic dairy, plant-based milks, fresh foods and coffee creamers. The acquisition will see the formation of a company that will better address tomorrow’s consumer trends, and accelerate the company’s path towards strong sustainable and profitable growth by 2020, commented Emmanuel Faber, chief executive officer at Danone.

Gregg Engles, chairman and chief executive officer at WhiteWave also views the acquisition favourably. “We believe this is a compelling transaction that delivers significant cash value to our shareholders,” he said, and added that Danone would enable the company to reach its next phase of growth.

Following the closing of the transaction at the end of the year, Danone will submit to its shareholders a resolution appointing Mr Engles to the Danone Board of Directors. Both companies expect to combine their US activities into a Public Benefit Corporation, and will establish a team to prepare for and to oversee the transition of businesses.