French yogurt producer Danone has agreed to sell its U.S. dairy business, Stonyfield, to Lactalis for US$875 million.
The sale addresses competition concerns over Danone’s $10-billion purchase of plant-based foods and beverages giant WhiteWave. To speed the closing of the sale, Danone reached an agreement with the U.S. Department of Justice (DOJ) in March to divest the New Hampshire-based organic yogurt producer. According to reports, the DOJ was worried about a monopoly in the organic milk market.
Stonyfield generated approximately $370 million in turnover in 2016, according to a press release announcing the sale. The $875 million price tag represents 20 times Stonyfield’s EBITDA in 2016. The deal between Danone and Lactalis is subject to approval by the DOJ and is expected to be complete in the third quarter of this year.