French dairy firm Danone has entered into an agreement to acquire a majority stake of over 90% in Happy Family, a leading firm in the US baby food market, for an undisclosed amount.
Happy Family, established in 2006, holds more than 4% share in the baby food market. The company specializes in products made with premium organic ingredients and its gross sales total over $60m.
The transaction is subject to certain regulatory approvals and is expected to be finalized in the next few months.
Danone Baby Nutrition division executive vice-president Martin Garcia said: "Building on a business model that has proven its effectiveness, we plan to step up the development of Happy Family and its brands."
Happy Family CEO Shazi Visram said that by joining Danone, the company will benefit from the expertise of a major international group, in particular for distribution and its renowned R&D capabilities.
"We are thrilled, as this agreement will allow us to further our goal of providing organic nutrition to more children, both by making our products more available and by continuing to provide new innovations to the baby and toddler category," Visram added.
Danone is an international company and has its presence on five continents. The company holds top positions in healthy food through its four businesses - Fresh Dairy Products, Baby Nutrition, Waters, and Medical Nutrition.
The company operates more than 190 production plants and employs 102,000 people. In 2012, the company generated sales of over €20bn.
