The French food group Danone
DANO.PA said Tuesday it has signed an agreement to sell its premium organic dairy units in the United States to investment firm Platinum Equity.
The sale of the Horizon Organic and Wallaby businesses is part of the portfolio review and asset rotation program announced by the company in March 2022, Danone said in a statement, without disclosing financial details of the transaction.
“This sale, once completed, will allow us to focus more on our current portfolio of strong, health-focused brands and reinvest in our growth priorities,” Danone CEO Antoine de Saint-Affrique said.
Danone will retain a minority stake in the company, the company added.
Danone declined to comment on the value of the transaction, but added that the sale would impact its 2024 financial results.
Platinum Equity did not immediately respond to a Reuters request for comment on the value of the transaction.
The Paris-based company said in January last year that it was exploring strategic options, including a potential sale, for its U.S. organic dairy business.
Danone’s organic dairy business in the United States included the companies Horizon Organic and Wallaby with a portfolio of organic dairy products, including milk, creams, yogurts, cheese and butter.
It represented approximately 3% of Danone’s global revenue and had a dilutive impact on Danone’s like-for-like revenue growth and current operating margin in 2022.