Danone to sell Stonyfield yogurt business to Lactalis for 875 million dollars | Progresiv
Lactalis will acquire the Stonyfield organic yogurt business from Danone for 875 million dollars. 
The announcement brings to a close speculation about Stonyfield’s future. Danone announced that it would sell the company, one of its US dairy subsidiaries, in March to help expedite the 10.4 billion dollars acquisition of WhiteWave Foods.
It is believed that the US Department of Justice (DOJ), which deals with anti-trust issues, had raised concerns about Danone’s future share of the premium, organic dairy market.
French-based Lactalis fought off competition from Yili, which last month emerged as the mostly likely suitor for Stonyfield, by beating the Chinese dairy’s 850 million dollars offer. General Mills was also rumoured to be interested in adding to its existing Yoplait and Liberté business, but was put off by the inflated price attached to Stonyfield.
The business, which produces a range of organic yogurts as well as smoothies, frozen yogurts and packaged milks, generated turnover in 2016 of approximately 370 million dollars – all within the US. But Danone had previously said that its buyout of WhiteWave Foods would create pre-tax synergies of 300 million dollars by 2020, prompting the decision to split off the Stonyfield business.
The move seriously boosts Lactalis’ operation in the Americas – roughly a fifth of the group’s overall business – and will presumably pave the way for Stonyfield’s products to be exported overseas. (www.foodbev.com)
