Food and beverage company WhiteWave Foods has bought Earthbound Farm in a $600m all-cash deal.
Earthbound Farm is an organic produce brand in North America. It produces and markets organic fresh fruits and vegetables, frozen fruits and vegetables, and dried fruits and snacks.
WhiteWave chairman and CEO Gregg Engles said, "With Earthbound Farm as part of our portfolio, WhiteWave will now provide the two most popular gateways for consumers to enter into the organic category - produce and dairy - and have a significant foothold in the fresh foods category, which represents one of the most attractive, emerging trends in the food industry today.
"We look forward to partnering with our talented colleagues at Earthbound Farm as we continue to work to change the way the world eats for the better."
The company backed the transaction using cash on hand and borrowings under its senior credit facilities, including a $500m seven-year incremental term loan.
It plans to operate the acquired business as a separate unit, to be based in San Juan Bautista, California.
In December 2013, WhiteWave signed a deal to takeover Earthbound Farm.
As a result of the transaction, no significant operational changes are expected at Earthbound Farm.
The company expects the acquisition to add approximately $0.07 cents per share to its adjusted net earnings in the first fiscal year.
Image: WhiteWave plans to operate Earthbound Farm as a separate unit, to be based in San Juan Bautista, California.
