Platinum Carves Horizon Organic and Wallaby from Danone
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Platinum Carves Horizon Organic and Wallaby from Danone

Publicly traded Danone acquired both the Horizon Organic and Wallaby businesses in 2017 as part of its acquisition of publicly traded WhiteWave Foods.

Horizon Organic’s portfolio of organic dairy products includes milk, creamers and whiteners, yogurt, cheese and butter.

SOURCE: Getty Images

Platinum Equity has agreed to acquire Horizon Organic from Danone, a Paris-based multinational food-products company.

Horizon Organic’s portfolio of organic dairy products includes milk, creamers and whiteners, yogurt, cheese and butter. According to the company, it is the largest USDA-certified organic dairy brand in the world and in 1991 introduced the first organic milk available nationwide in the United States.

Source: Horizon Organic

Platinum’s acquisition also includes the Wallaby brand, an Australian-inspired Greek-style yogurt made with organic milk and premium ingredients. Danone acquired both the Horizon Organic and Wallaby businesses in 2017 as part of its acquisition of publicly traded WhiteWave Foods.

According to Platinum, the US dairy category is estimated at $68 billion with milk comprising approximately $17 billion of that total. “Premium offerings, including organic and value-added products, are driving the growth in the dairy milk category,” said Adam Cooper, a managing director of Platinum. “Horizon Organic is a pioneer of that segment and is in position to continue capitalizing on and accelerating the trend.”

Platinum’s current portfolio includes a range of food companies including Biscuit International, a France-based manufacturer of private-label sweet biscuits (February 2020); Fantini Group, an Italy-based wine producer (March 2020); and Iberconsa, a Spain-based provider of frozen seafood products (June 2019). Earlier food-related investments include JM Swank, an Iowa-based food ingredients distributor acquired from ConAgra in June 2016 and sold to Brenntag in June 2021; and Harvest Meat Company, a US distributor of packaged meat and bakery products that was acquired in June 2012 and later exited.

“Horizon Organic is an iconic name in dairy that is well recognized and beloved by consumers,” said Louis Samson, a co-president of Platinum. “The brand has earned a reputation for quality and innovation that is unmatched in the industry. We appreciate Danone’s confidence in our ability to build on that legacy and support Horizon Organic’s growth as a standalone company.”

Publicly traded Danone is a multinational food-products corporation that produces and sells yogurt, plant-based food and beverages, water, organic milk, and ready-to-drink coffee and creamers. The company is headquartered in Paris and had revenues in 2022 of more than €27 billion.

Platinum Equity invests in a range of industries including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, and telecommunications. The firm has experience with carve-outs from large corporations including transactions with Ball Corporation, Caterpillar,  ConAgra, Emerson Electric, Ingersoll Rand and Johnson & Johnson.

“We are excited about Horizon Organic’s potential as an independent business with a renewed sense of focus and a commitment to investing in its success,” added Mr. Cooper. “We have a lot of experience supporting food and beverage businesses and we look forward to partnering with Horizon Organic’s management team to ensure a seamless transition and chart a path for continued growth and expansion.”

Platinum was formed in 1995 by Tom Gores and is headquartered in Beverly Hills, California.

© 2024 Private Equity Professional | January 9, 2024

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