French food group Danone has signed a binding agreement to sell its US dairy subsidiary, Stonyfield, to Lactalis for $875m.
The price of the deal represents 20 times its earnings before interest, tax, depreciation and amortization (EBITDA) in 2016.
Stonyfield had a turnover of about $370m in 2016. The sale is part of the deal reached with the US Department of Justice (DOJ) with respect to the Danone's recetly completed acquisition of WhiteWave.
The sale of the US dairy subsidiary is subject to customary conditions, including final approval by the DOJ. It is expected to close in the third quarter of this year.
Danone and WhiteWave have combined their activities in North America to operate as a strategic business unit, dubbed DanoneWave.
The combination will include Danone Dairy’s and WhiteWave’s existing North American businesses under the leadership of Lorna Davis, who has been appointed CEO of the combined entity.
WhiteWave Foods is an American consumer packaged food and beverage company that manufactures, markets, distributes, and sells branded plant-based foods and beverages, coffee creamers and beverages.
Danone, founded in 1919, is built on four business lines that include fresh dairy products, early life nutrition, waters and medical nutrition.
Working across 130 markets, Danone generated sales of €22.4bn in 2015.
