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Danone enters into merger agreement to acquire WhiteWave Foods at $12.5 bn
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Saturday, 09 July, 2016, 08 : 00 AM [IST]
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Paris, France and Denver, Colorado, USA
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fiogf49gjkf0d Danone, a leading name in dairy, nutrition, and waters, and The WhiteWave Foods Company, a packaged food and beverage company with organic offerings, recently announced that they have entered into a definitive merger agreement under which the former will acquire the latter for $56.25 per share in an all-cash transaction, representing a total enterprise value of approximately $12.5 bn, including debt and certain other WhiteWave liabilities. The transaction has been unanimously approved by the board of directors of both companies. Its price represents a premium of approximately 24 per cent over WhiteWave’s 30-day average closing trading price ($45.43). The transaction is expected to close by the end of the year, subject to the approval of WhiteWave’s shareholders, regulatory approvals, and customary conditions.
According to a press release issued by Danone, together, the two companies will create a global leader committed to addressing tomorrow’s consumer trends by providing healthy and sustainable eating and drinking options.
Emmanuel Faber, chief executive officer, Danone, said, “At Danone, we constantly seek to align our vision of the world, our mission and our businesses: we believe we have a special responsibility, as expressed in our manifesto, to help and support people in adopting healthier and more sustainable eating and drinking practices and constantly evolve our portfolio of brands and products to achieve this objective. To that extent, we found in WhiteWave the perfect alliance as we both believe in a healthier future and are conscious of our power to lead society forward.”
“This unique combination positions us better to address tomorrow’s consumer trends and represents a great opportunity to step change the ambition of our plan for an alimentation revolution and to accelerate our path towards strong sustainable and profitable growth by 2020. It will allow us to enhance Danone’s growth profile and reinforce our resilience through a broader platform in North America. We are convinced that combining with WhiteWave will create significant value for all of our stakeholders.”
Franck Riboud, chairman, Danone, said: “I believe this acquisition advances Danone’s mission and rich history of being at the forefront of emerging consumer trends and commitment to creating economic and social value. The Danone board of directors and strategy committee unanimously approved this transaction. We believe WhiteWave’s size, positioning and geographical footprint fit perfectly with Danone's strategy and that it is the right transaction at the right time. The Danone board will propose that shareholders approve the appointment of Gregg Engles, WhiteWave chairman and chief executive officer as a member of our board upon completing the transaction as we pursue our ambitious vision together.”
Gregg Engles, chairman and chief executive officer, WhiteWave, said: “Today’s announcement is an exciting next chapter for WhiteWave, bringing together two leading companies with a shared mission of changing the way the world eats for the better. We believe this is a compelling transaction that delivers significant cash value to our shareholders. Danone is a unique company with distinctive capabilities that will enable WhiteWave to reach its next phase of growth. Danone is a great cultural fit for our organisation and I am excited for our employees to benefit from the opportunities presented by joining Danone, a leading global food company, and the ideal strategic partner to support our future. I am pleased to be joining Danone’s board to assist with the exciting and unique journey combining our two companies.”
Present in over 130 markets, Danone generated sales of €22.4 billion in 2015, with more than half in emerging countries. Its brand portfolio includes both international brands (Activia, Actimel, Danette, Danonino, Danio, evian, Volvic, Nutrilon/Aptamil, Nutricia) and local brands (Oikos, Prostokvashino, Aqua, Bonafont, Mizone, Blédina, Cow & Gate).
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