French food company Danone announces sale of its organic dairy businesses Horizon Organic and Wallaby in the US to renowned investment firm Platinum Equity. The purchase price for the transaction was not disclosed. This move is part of a comprehensive portfolio review that Danone initiated in 2022.

As the company announced, the two brands together accounted for around 3 percent of the global corporate revenue. In addition, they had a dilutive effect on the like-for-like revenue growth and recurring operating margin. With the sale of these business areas, Danone aims to focus more on its current portfolio of strong and health-oriented brands and invest in its growth priorities.

Danone CEO Antoine de Saint-Affrique commented on the sale: "This move allows us to further focus on our strategic priorities. We will continue to maintain a minority stake in the sold business areas, but it will no longer impact our financial results after the completion of the deal."

Platinum Equity, the buyer of the Danone brands, emphasized the benefits that the acquisition brings. "Through our experience in carve-out and our extensive operational know-how, we will contribute to realizing the full potential of Horizon Organic and Wallaby," explained a spokesperson for the company. Platinum Equity operates in various industries and holds stakes in well-known companies such as biscuit manufacturer Biscuit International, renowned wine producer Fantini Group Vini, and seafood provider Iberconsa.

Investors React Positively to News at Paris Stock Exchange: Danone Stock rises 0.46% to €58.95. The sale of Danone's US organic dairy business is an important step for the company to establish itself as a global leader in the healthy food industry and strategically expand its portfolio.