Danone agrees to sell dairy brand in order to acquire WhiteWave
DENVER — WhiteWave Foods Co. (NYSE: WWAV) is one step closer to being acquired by Danone, reaching an agreement suitable to the U.S. Department of Justice Antitrust Division.
To close its $10 billion acquisition of WhiteWave, Danone agreed to sell one of its U.S. dairy subsidiaries, Stonyfield. The sale would happen shortly after the acquisition of WhiteWave. Selling Stonyfield provides the quickest route to closing on the deal with WhiteWave.
“While Stonyfield has been a valued part of Danone’s portfolio and remains a highly attractive asset, its divestiture does not impact the strategic rationale or financial benefits of the WhiteWave acquisition,” wrote Danone in a statement.
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Stonyfield generated about $370 million in turnover in 2016.
Even with the sale of Stonyfield, Danone reconfirmed the value creation expected from the purchase of WhiteWave, including earnings before interest and taxes of $300 million by 2020.
The purchase of WhiteWave doubles Danone’s North American business to more than $6 billion in turnover.
WhiteWave, started in Boulder, is now based in Denver, with a significant operation in Broomfield.
DENVER — WhiteWave Foods Co. (NYSE: WWAV) is one step closer to being acquired by Danone, reaching an agreement suitable to the U.S. Department of Justice Antitrust Division.
To close its $10 billion acquisition of WhiteWave, Danone agreed to sell one of its U.S. dairy subsidiaries, Stonyfield. The sale would happen shortly after the acquisition of WhiteWave. Selling Stonyfield provides the quickest route to closing on the deal with WhiteWave.
“While Stonyfield has been a valued part of Danone’s portfolio and remains a highly attractive asset, its divestiture does not impact the strategic rationale…
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