Nasdaq Proposes Fast-Track Rule to Accelerate Index Inclusion for Major New Listings 
Global PC Makers Eye Chinese Memory Chip Suppliers Amid Ongoing Supply Crunch 
Rio Tinto Shares Hit Record High After Ending Glencore Merger Talks 
Weight-Loss Drug Ads Take Over the Super Bowl as Pharma Embraces Direct-to-Consumer Marketing 
Alphabet’s Massive AI Spending Surge Signals Confidence in Google’s Growth Engine 
Once Upon a Farm Raises Nearly $198 Million in IPO, Valued at Over $724 Million 
Tencent Shares Slide After WeChat Restricts YuanBao AI Promotional Links 
Amazon Stock Rebounds After Earnings as $200B Capex Plan Sparks AI Spending Debate 
American Airlines CEO to Meet Pilots Union Amid Storm Response and Financial Concerns 
SpaceX Prioritizes Moon Mission Before Mars as Starship Development Accelerates 
SpaceX Pushes for Early Stock Index Inclusion Ahead of Potential Record-Breaking IPO 
FDA Targets Hims & Hers Over $49 Weight-Loss Pill, Raising Legal and Safety Concerns 
SoftBank Shares Slide After Arm Earnings Miss Fuels Tech Stock Sell-Off 
TrumpRx Website Launches to Offer Discounted Prescription Drugs for Cash-Paying Americans 
Missouri Judge Dismisses Lawsuit Challenging Starbucks’ Diversity and Inclusion Policies 
Sony Q3 Profit Jumps on Gaming and Image Sensors, Full-Year Outlook Raised 
OpenAI Expands Enterprise AI Strategy With Major Hiring Push Ahead of New Business Offering 
Danone S.A., the Paris-based food company, announced on Tuesday, Jan. 2, that it has entered a deal with Platinum Equity PEF group to sell its dairy businesses in the United States. The company said it signed a contract to sell its Horizon Organic And Wallaby Organic premium dairy brands.
Danone explained that this move is a strategy and part of its portfolio review and asset rotation scheme, which it first announced in March 2022. But while the French food producer revealed its deal with Platinum Equity, it did not disclose the financial aspect of the agreement but said the sale would affect its financials this year, as per Reuters,
Danone's Plan After the Sale of Its US-based Dairy Brands
The company will keep a minority stake in the organic dairy businesses it is selling. Once the deal is completed, Danone's chief executive officer, Antoine de Saint-Affrique, said they will dedicate more time and effort to their strong health-focused units or brands. He said they will also reinvest in Danone's growth priorities as part of its "Renew Danone" blueprint.
"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," Danone's CEO said in a statement. "Today marks an important milestone in delivering this commitment while allowing the Horizon Organic and Wallaby businesses to thrive under new leadership."
Platinum Equity Confirms Acquisition of Wallaby and Horizon Organic
In any case, Danone's Horizon Organic and Wallaby brands are operating in the U.S. They mainly sell milk, yogurt, cheese, creamers, and butter. The sales from these business units make up three percent of the company's global revenues.
The American dairy market is estimated to be worth $68 billion, with milk making up $17 billion of that amount. Thus, Platinum Equity's deal with Danone is a good purchase decision.
"Horizon Organic is an iconic name in dairy that is well recognized and beloved by consumers," Louis Samson, Platinum Equity's co-president, said in a press release. "The brand has earned a reputation for quality and innovation that is unmatched in the industry. We appreciate Danone's confidence in our ability to build on that legacy and support Horizon Organic's growth as a standalone company."
Photo by: Danone PR Room
