Danone Selling Horizon Organic and Wallaby to Private Equity Firm

Jan. 3, 2024

Platinum Equity, a U.S.-based investment firm, holds a variety of 50 companies, few in food and no food holdings in the U.S.

Dave Fusaro

Danone today (Jan. 2) said it has an agreement to sell its organic dairy businesses in the U.S. – meaning Horizon Organic and Wallaby yogurt -- to Platinum Equity, a U.S.-based investment firm. The sale is part of Danone’s portfolio review and asset rotation program the company announced in March 2022, as part of its Renew Danone strategy.

The “U.S. premium organic dairy activity” represented approximately 3% of Danone’s global revenues and had a dilutive impact on Danone’s sales growth and operating margin. Price of the transaction was not disclosed. Danone will retain a non-consolidated minority stake in the business.

Last January, Danone announced it was exploring options for the businesses, which it acquired along with WhiteWave Foods in 2016. The two brands feature a portfolio of organic dairy products, including milk, creamers & whiteners, yogurt, cheese and butter.

“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,” said Danone CEO Antoine de Saint-Affrique.

“Today marks 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.”

Platinum Equity owns more than 50 companies in a wide variety of categories, from the Detroit Pistons (bad investment!) to McGraw-Hill publishing to Jostens school rings and yearbooks. In the food space, it owns Biscuit International in Europe, Fantini Group wines in Italy and Iberconsa seafood in Spain.

About the Author

Dave Fusaro | Editor in Chief

Dave Fusaro has served as editor in chief of Food Processing magazine since 2003. Dave has 30 years experience in food & beverage industry journalism and has won several national ASBPE writing awards for his Food Processing stories. Dave has been interviewed on CNN, quoted in national newspapers and he authored a 200-page market research report on the milk industry. Formerly an award-winning newspaper reporter who specialized in business writing, he holds a BA in journalism from Marquette University. Prior to joining Food Processing, Dave was Editor-In-Chief of Dairy Foods and was Managing Editor of Prepared Foods.