Yoghurt giant Danone is selling its Stonyfield brand to Lactalis, a fellow French company, for US$875 million, to satisfy US antitrust concerns.
The purchase price represents 20 times Stonyfield’s earnings before interest, tax, depreciation, and amortization in 2016, Danone said in a Monday announcement.
Stonyfield, until now a US subsidiary of Danone, is an organic yoghurt maker based in Londonderry, New Hampshire. It generated approximately US$370 million in revenue in 2016, according to Danone.
The sale is part of a March 2017 agreement with the US Department of Justice stemming from competition issues related to Danone’s US$12.5 billion acquisition of the Denver-based organic food company WhiteWave, whose brands include Silk and Horizon Organic.
The divestiture is subject to final approval by the Department of Justice and is expected to be finalized in the third quarter of this year, Danone said.
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