France based Danone announced its decision of expanding its business in the United States by purchasing the leading organic food manufacturer WhiteWave Foods company for 10.4 billion dollars. This is Donone’s largest acquisition since the year 2007. With this move, Donone will be able to cater to the needs of wealthy customers by including some of WhiteWave’s health products like Earthbound Farm organic salad, Slik almond milk and Horizon organic milk in their product offerings.
In view of the fact that Danone is struggling in markets like Russia and Brazil, this move will definitely help the company in registering higher profits. Donone, which is primarily renowned for Actimel and Activia yoghurt stated that it had decided to offer 56.25 dollars for every single share in terms of cash. The shares of WhiteWave have gone up by around 19.8% to as much as 56.82 dollars and continued to hover over and above the offer pricing. This clearly indicates that the investors can expect a higher bidding for the company.
WhiteWave has always been assumed as one of the most sought-after targets after it started operating independently in 2012. WhiteWave will be paying Danone three hundred ten million dollars in case the deal isn’t struck for one or the other reason.