Danone to Sell US Organic Dairy Assets

French food group Danone has signed an agreement to sell its premium organic dairy units in the US to Platinum Equity, a US-based investment firm.

The sale of the Horizon Organic and Wallaby businesses is part of the company's portfolio review and asset rotation program the company announced in March 2022, Danone said in a statement. No financial details of the deal were disclosed.

"Today marks an important milestone in delivering this commitment while giving the Horizon Organic and Wallaby businesses the opportunity to thrive under new leadership, said Danone CEO Antoine de Saint-Affrique. "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 will retain a minority stake in the business, the company added. The dairy giant declined to comment on the deal value, but added that the sale would have an impact on its 2024 financials.

In January 2023, the Paris-based company said it was exploring strategic options, including a potential sale, for its organic dairy activity in the US.

Danone's organic dairy activity in the US is comprised of Horizon Organic and Wallaby with a portfolio of organic dairy products, including milk, creamers, yogurt, cheese, and butter.

It represented approximately 3% of Danone's global revenues.