Danone Acquires Majority Stake in Kate Farms
Source: dairynews.today
Danone expands its medical nutrition portfolio with the acquisition of a majority stake in Kate Farms.
French multinational Danone has announced a major expansion of its specialized nutrition division with the acquisition of a majority stake in California-based Kate Farms. Founded in 2011 by Richard and Michelle Laver, Kate Farms specializes in plant-based and organic nutrition products, catering to various dietary needs through its four product categories, including everyday nutrition and medical nutrition.
Shane Grant, Deputy CEO of Danone Group, emphasized the strategic fit of the acquisition, highlighting its alignment with Danone's science-based and patient-centered approach. He stated, "This partnership aligns perfectly with our science-based and patient-centred approach to specialised nutrition. Kate Farms’ innovative medical nutrition products expand our offerings, enhance our ability to provide better solutions for people with wide-ranging health needs, and support healthier lives, both in the US and globally.”
While financial terms remain undisclosed, Kate Farms' senior management will maintain a minority interest, and CEO Brett Matthews is set to lead Danone's North American Medical Nutrition division. Matthews expressed optimism about the deal, citing shared values and the potential for international growth.
Analyst Warren Ackerman from Barclays perceives this acquisition as a strategic move by Danone, consistent with prior acquisitions such as Functional Formularies last year, which bolster Danone's response to declining fertility rates impacting its infant nutrition segment. Danone attributes 12% of its revenue and nearly 20% of its EBIT to its adult medical nutrition business.
As of 2024, Danone reported a 4.3% sales growth on a like-for-like basis, reaching €27.37bn, with the Specialized Nutrition segment contributing €8.93bn, reflecting a reported 5.1% increase. This acquisition indicates Danone's continued commitment to growth within the Specialized Nutrition sector.
Shane Grant, Deputy CEO of Danone Group, emphasized the strategic fit of the acquisition, highlighting its alignment with Danone's science-based and patient-centered approach. He stated, "This partnership aligns perfectly with our science-based and patient-centred approach to specialised nutrition. Kate Farms’ innovative medical nutrition products expand our offerings, enhance our ability to provide better solutions for people with wide-ranging health needs, and support healthier lives, both in the US and globally.”
While financial terms remain undisclosed, Kate Farms' senior management will maintain a minority interest, and CEO Brett Matthews is set to lead Danone's North American Medical Nutrition division. Matthews expressed optimism about the deal, citing shared values and the potential for international growth.
Analyst Warren Ackerman from Barclays perceives this acquisition as a strategic move by Danone, consistent with prior acquisitions such as Functional Formularies last year, which bolster Danone's response to declining fertility rates impacting its infant nutrition segment. Danone attributes 12% of its revenue and nearly 20% of its EBIT to its adult medical nutrition business.
As of 2024, Danone reported a 4.3% sales growth on a like-for-like basis, reaching €27.37bn, with the Specialized Nutrition segment contributing €8.93bn, reflecting a reported 5.1% increase. This acquisition indicates Danone's continued commitment to growth within the Specialized Nutrition sector.
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