Danone buys US WhiteWave Foods – Portafolio.co

The French company Danone said double the size of your business by buying organic food producer WhiteWave Foods by 12.500 million, including approximately US $ 2,100 million of debt and “other” liabilities.

The aim with this purchase, for Danone, is capture consumers of natural foods WhiteWave that are popular , like almond milk Silk, the Earthbound Farm Organic salad and Horizon organic milk, at times facing setbacks in the most demanding markets such as Brazil and Russia.

This is the first major operation carried out by the CEO Emmanuel Faber, who assumed command of Danone in 2014 with the commitment to return the group a “growth profitable and sustainable “for 2020.

Danone, best known for its Activia and Actimel yoghurts said US $ 56.25 offered per share in cash, which gives a value to WhiteWave of US $ 10,400 million.

This amount makes the acquisition the most important of the French company since the purchase of Dutch baby food group Numico in 2007.

“We are creating a leader truly global, in line with consumer trends lasting for healthier options, “Faber said in a conference call with analysts.

On Wednesday, around noon, Danone shares rose 4.25 percent to 66 euros, leading gains in the French CAC-40 index.

at the end of the day, WhiteWave shares closed at $ 47.43.
WhiteWave products are in line with current consumer shift toward natural foods and a healthier diet.
The US company was seen as an attractive acquisition target since it was spun off from Dean Foods, especially for companies like General Mills and Campbell Soup, who bought healthier brands or reformulating their products.

“WhiteWave is the food company’s fastest-growing US and fits excellently with Danone, focusing on organic and dairy foods,” analysts at Canaccord Genuity Limited said.

Rebound in European shares

Yesterday European stocks ended higher and snapped a streak of three days of losses, boosted by gains in paper companies Danone and Associated British Foods.

The pan-European FTSEurofirst 600 index Stoxx 300 closed both with increases of 1.05 and 0.96 percent, respectively.

Danone shares rose as much as 7 percent after the company announced plans with American group, and closed up 1.9 percent as some investors say the deal looked expensive.

Meanwhile, shares of Associated British Foods rose 8.9 percent after the company confirmed plans to expand its chain of clothing stores Primark by the United States and Europe, and expressed optimism about their growth despite the uncertainty over the UK departure of the European Union.

However, advances last Thursday, the Stoxx 600 accumulates a fall of around 7 percent since the referendum on June 23 in the UK who decided that the country will leave the European Union.

Shares of British banks and real estate companies have been the hardest hit. Investors said the uncertainty created by the ‘Brexit’ continue to push European markets.