USA – Private equity firm, Platinum Equity has finalized a definitive agreement to acquire Horizon Organic and Wallaby from the multinational food-products corporation Danone.
The deal, initially disclosed in January 2023, is part of Danone’s strategic portfolio review and represents a shift in focus for the French dairy giant.
Horizon Organic, a pioneer in the organic dairy market, introduced the first coast-to-coast organic milk in the United States in 1991.
The brand’s product range includes a variety of organic dairy items such as milk, creamers, whiteners, yogurt, cheese, and butter.
Wallaby, an Australian-inspired Greek-style yogurt brand, is known for its use of organic milk and premium ingredients.
The businesses being acquired, which constitute approximately 3% of Danone’s global revenues, are set to undergo a change in ownership as Platinum Equity takes the helm.
According to Danone, the decision to explore strategic options, including a potential sale, is aligned with its “Renew” strategy, focusing on disciplined resource allocation and prioritizing growth areas.
CEO Antoine de Saint-Affrique acknowledged the strength and growth potential of both Horizon Organic and Wallaby but emphasized the need to align resources with priority growth areas.
“We are confident that exploring strategic options for these brands will enable them to get the focus and resources they need and therefore allow them to maximize their potential and unlock further growth,” he stated.
On the other hand, Platinum Equity’s co-president, Louis Samson, expressed confidence in the iconic Horizon Organic brand, recognizing its reputation for quality and innovation in the dairy industry.
He noted that the private equity firm sees the acquisition as an opportunity to support Horizon Organic’s growth as a standalone company.
Additionally, Adam Cooper, managing director at Platinum Equity, highlighted the growth trends in premium offerings, including organic and value-added products, within the dairy milk category.
He expressed excitement about Horizon Organic’s potential as an independent business with a renewed focus, committing to investing in its success.
“The acquisition is contingent on customary closing conditions and regulatory approval,” he stated.
While the terms of the transaction were not disclosed, the move signifies a strategic realignment for both Danone and the acquired dairy brands under the stewardship of Platinum Equity.