Danone to acquire WhiteWave for $12.5bn

French multinational food company Danone has signed a definitive agreement to acquire US-based WhiteWave Foods.

According to the agreement, Danone will purchase each White Wave share for $56.25 in an all-cash transaction, which represents a total enterprise value of approximately $12.5bn, including debt and certain other WhiteWave liabilities.

The transaction has been approved by board of directors of both companies.

It is expected to close by the end of the year, subject to the approval of WhiteWave’s shareholders, regulatory approvals, and customary conditions.

Danone CEO Emmanuel Faber said: "At Danone, we constantly seek to align our vision of the world, our mission and our businesses: we believe we have a special responsibility, as expressed in our Manifesto, to help and support people in adopting healthier and more sustainable eating and drinking practices and constantly evolve our portfolio of brands and products to achieve this objective.

"To that extent, we found in WhiteWave the perfect alliance as we both believe in a healthier future and are conscious of our power to lead society forward. This unique combination positions us better to address tomorrow’s consumer trends and represents a great opportunity to step change the ambition of our plan for an Alimentation revolution and to accelerate our path towards strong sustainable and profitable growth by 2020.

"It will allow us to enhance Danone’s growth profile and reinforce our resilience through a broader platform in North America. We are convinced that combining with WhiteWave will create significant value for all of our stakeholders."

WhiteWave chairman and CEO Gregg Engles said: "We believe this is a compelling transaction that delivers significant cash value to our shareholders."

Last year, WhiteWave generated $4bn in sales through its portfolio of food and beverage categories, including premium organic dairy; non-GMO, plant-based alternatives to milk and yogurt; fresh foods; and coffee creamers.

With the closing of the deal, Danone’s North America footprint will increase from 12% to 22% of Danone’s total portfolio.