Danone to Divest Horizon Organic, Wallaby to Private Equity Firm
Danone has found a buyer for its premium dairy brands Horizon Organic and Wallaby, announcing today it has agreed to sell the businesses to investment firm Platinum Equity.
The French multinational corporation previously said in January 2023 that it intended to divest its U.S. organic dairy portfolio review and asset rotation program, which had been announced in March 2022.
In a February 2023 report, the company said Horizon and Wallaby represented around 3% of Danone’s total revenues and “had a dilutive impact on Danone’s like-for-like sales growth and recurring operating margin in 2022.” However, in a press release today, Danone CEO Antoine de Saint-Affrique said the brands “fell outside” its “priority growth areas.”
“Today marks an important milestone in delivering this commitment while giving the Horizon Organic and Wallaby businesses the opportunity to thrive under new leadership,” de Saint-Affrique stated. “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.”
Danone will keep a non-consolidated minority stake in Horizon. Financial terms of the deal were not disclosed.
A pioneer in organic dairy products, Horizon Organic launched its first USDA-certified organic milk in 1991 and today markets a full line of products including creamers, yogurt, cheese and butter. Danone acquired the brand in 2016 as part of its $12.5 billion purchase of WhiteWave Foods.
According to Circana, retail dollar sales of Horizon’s white milk were up 4.4% to over $665.8 million in the 52-week period ending October 8, 2023. Its ready-to-drink milk beverages were down -2.7% to $119.3 million and yogurts/yogurt drinks rose 63.5% to $8.1 million. That data is not representative of Horizon’s full line of products.
Wallaby Organic is an “Australian-inspired Greek-style yogurt” brand which produces a variety of flavored yogurts including whole milk and lowfat offerings.
Platinum Equity is a California-based private equity firm. According to its website, it manages a portfolio of assets worth over $47 billion across numerous industries, including European sweet biscuits maker Biscuit International, seafood provider Iberconsa, pet products brand Petmate, and the Detroit Pistons NBA franchise; Pistons owner Tom Gores serves as chairman and CEO of the firm.
“Horizon Organic is an iconic name in dairy that is well recognized and beloved by consumers,” Platinum Equity co-president Louis Samson 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.”
In the release, Platinum Equity managing director Adam Cooper stated that Horizon Organic will operate as an independent business.
“We have a lot of experience supporting food and beverage businesses,” Cooper said. “We look forward to partnering with Horizon Organic’s management team to ensure a seamless transition and chart a path for continued growth and expansion.”
