Danone buys most nutritional business based on Kate Farms plants

Danone has reached an agreement to acquire a majority participation in Kate Farms, a United States -based business that makes nutritional products based on plants and organic.

Founded in 2011 by Richard and Michelle Laver, Kate Farms, based in California, supplies a range of products from nutritious smoothies to sale in mass market retailers to tube feeding products sold directly to health care suppliers.

Kate Farms classifies its product in four areas: “everyday nutrition” for daily dietary needs; “Medical Nutrition” for medical and dietary requirements; “Nutrition for children” for children between the ages of one and 13; and specialized nutrition to support diets aimed at specific health conditions.

Company customers ranged from retailers, including Walmart and Amazon, to more than 1,400 hospitals.

Shane Grant, Deputy General Director of Danone Group, said: “This collaboration is perfectly aligned with our science -based approach and patient -centered specialized nutrition.

“Kate Farm Medical Nutrition Medical Products expand our offers, improve our ability to provide better solutions to broad health needs and support healthier lives, both in the United States and in the world.”

The financial details of the agreement have not been revealed.

Danone said the higher management of Kate Farms will retain a minority participation in the business. Kate Farm Chief Executive Officer Brett Matthews will take on the role of the President and CEO of the Danone North -American Medical Nutrition Division.

Matthews said: “Together, we can bring our innovative nutritional products to be scientifically developed to more and more people.

“Base -Danone’s experience, we can also expand internationally. It is rare for two companies to gather by virtue of the same values ​​and a philosophy of building a growth company that helps people to live their best life, given by team members who show their heart and experience every day.”

Commenting on the agreement, Barclays Equity analyst, Warren Ackerman, said: “Although the agreement is not material for Danone, we consider it a clear signal about the company’s travel direction and follows a path similar to the agreement of functional forms.”

In May last year, Danone took functional business forms fueled by the United States of the private capital, Swander Pace Capital.

Ackerman said that Barclays estimates that the Danone’s medical nutrition business business accounts for 12% of the company’s income and about 20% of the group’s ebit group.

The business is, he added, “a good fence to reduce fertility rates that could affect their child nutrition unit.”

Danone has three divisions of groups: dairy essential and plant -based products; Waters; and specialized nutrition. The medical business is within specialized nutrition, next to the children’s formula.