Danone, the world's biggest yogurt maker, said it agreed to buy YoCream International Inc., a U.S. producer of frozen yogurt, for $103 million (or about $39.82 in cash for each share), adding distribution networks for restaurants and convenience stores, reports Bloomberg. The sale is expected to conclude this year.
"The transaction will enable Danone to move into frozen yogurt, a fast-growing segment in the U.S.," Groupe Danone said. "It will also gain access to an away-from-home distribution network, in addition to its existing channels.
Shareholders of YoCream, who own about 77 percent of the company's stock, plan to vote in favor of the acquisition. John Hanna, who formed the company with his brothers Dave and Jim, will remain CEO of the company.
YoCream, which offers more than 110 flavors of frozen yogurt, ice cream, frozen custard, sorbet, smoothies, frozen carbonated beverages, slushes and frozen drink mixes, sells its frozen yogurt products in 17 foreign countries which represents approximately 4 percent of the company's net sales in 2010, and forecasts sales this year of $58 million.
Skinny is that Yoplait will be the next to go. PAI partners is seeking a buyer for its 50 percent stake.