French food group Danone has signed an agreement to sell its premium organic dairy units in the US to Platinum Equity, a US-based investment firm.
The sale of the Horizon Organic and Wallaby businesses is part of Danone’s portfolio review and asset rotation program the company announced in March 2022.
Danone, which did not disclose the financial details of the sale, will retain a non-consolidated minority stake in the business.
In 2022, the US premium organic dairy activity represented approximately 3% of Danone’s global revenues.
Commenting on the deal, Antoine de Saint-Affrique, Danone chief executive officer, said: “As part of our Renew Danone strategy, we committed to a portfolio review and asset rotation
for businesses that fell outside our priority growth areas of focus to drive value creation.”
He said that the deal marked an “important milestone” in delivering this commitment while giving the Horizon Organic and Wallaby businesses “the opportunity to thrive under new leadership”.
“This sale, once completed, will allow us to concentrate further on our current portfolio of strong, health-focused brands and reinvest in our growth priorities,” he added.
Danone
Last month, Danone published its climate transition plan which detailed the company’s roadmap to reach its “2030 1.5°C science-based targets” and achieve net-zero emissions by 2050 across its entire value chain.
The company said it would be intensifying its efforts to increase energy efficiency and the transition to renewable energy, accelerate efforts in low-carbon dairy production and lead on methane emissions reduction.
It also committed to source ingredients sustainably, transition to circular and low-carbon packaging and engage with suppliers to decarbonise their greenhouse gas (GHG) emissions.
In 2023, Danone committed to a 30% reduction in its methane emissions from fresh milk by the end of the decade.
“We aim to transform the food sector by adopting and promoting agricultural models that can protect soil health, while feeding a global population that is set to surpass 9 billion people by 2050,” Antoine de Saint-Affrique, Danone chief executive officer, said.
“At the same time, we can improve people’s health by reconnecting consumers to nature and protect the planet through endeavors like soil carbon sequestration,” he added.