July 7, 2016

French dairy firm to acquire WhiteWave for $12.5 billion

DENVER — Paris-based dairy company Danone SA will acquire Denver-based WhiteWave Foods Co. (NYSE: WWAV) for about $12.5 billion, the company’s announced Wednesday evening.

WhiteWave, whose brands include Silk, Horizon Organic and Earthbound Farm, employs more than 500 people in Broomfield, where its Americas Food and Beverage segment is run.

WhiteWave was founded in 1977 in Boulder by Steve Demos, who sold the company to Dean Foods Co. (NYSE: DF) in 2004. Dean Foods spun off WhiteWave into a publicly traded company in 2013.

Danone will acquire WhiteWave for $56.25 per share in an all-cash transaction, including debt and certain other WhiteWave liabilities.

The price represents a premium of approximately 24 percent over WhiteWave’s 30-day average closing trading price of $45.43. The transaction will be financed with debt, for which Danone has received commitments from its banks.

Danone and WhiteWave expect to combine their U.S. activities into a public benefit corporation. It allows for public benefit to be a charter purpose in addition to the traditional corporate goal of maximizing profit for shareholders.

Danone generated sales of $24.5 billion in 2015, with more than half in emerging countries. Danone’s brand portfolio includes both international brands — Activia, Actimel, Danette, Danonino, Danio, evian, Volvic, Nutrilon/Aptamil, Nutricia — and local brands — Oikos, Prostokvashino, Aqua, Bonafont, Mizone, Blédina, Cow & Gate.

WhiteWave generated $4 billion in sales in 2015. It has a portfolio of large and leading brands in North America and Europe in high-growth, on-trend food and beverage categories that focus on premium organic dairy, non-GMO, plant-based alternatives to milk & yogurt, fresh foods, and coffee creamers.

The transaction, which has been approved by each company’s board of directors, is expected to close by the end of the year. The deal is subject to WhiteWave’s shareholders approval, receipt of required regulatory approvals, including in the European Union and the United States, and other customary closing conditions.

Gregg Engles, WhiteWave’s chairman and chief executive, said in a prepared statement that the acquisition is an “exciting next chapter for WhiteWave, bringing together two leading companies with a shared mission of changing the way the world eats for the better.  We believe this is a compelling transaction that delivers significant cash value to our shareholders.”

Officials at both companies said the transaction will further diversify Danone’s portfolio and broadens its presence in North America. Danone said it plans to appoint Engles to the company’s board of directors after the deal closes.

DENVER — Paris-based dairy company Danone SA will acquire Denver-based WhiteWave Foods Co. (NYSE: WWAV) for about $12.5 billion, the company’s announced Wednesday evening.

WhiteWave, whose brands include Silk, Horizon Organic and Earthbound Farm, employs more than 500 people in Broomfield, where its Americas Food and Beverage segment is run.

WhiteWave was founded in 1977 in Boulder by Steve Demos, who sold the company to Dean Foods Co. (NYSE: DF) in 2004. Dean Foods spun off WhiteWave into a publicly traded company in 2013.

Danone will acquire WhiteWave for $56.25 per share in an all-cash transaction, including debt and certain other WhiteWave liabilities.

The price…

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