Danone to acquire majority stake in organic baby food firm Happy Family

French dairy firm Danone has entered into an agreement to acquire a majority stake of more than 90% in Happy Family, a leading baby food producer in the US, for an undisclosed amount.

Happy Family, established in 2006, holds an estimated 4% share in the US baby food market.

The company specialises in products made with premium organic ingredients and has gross sales of more than $60m.

Happy Family’s development has been driven by its wide and varied range of products that offer convenience and nutritional benefits.

The transaction, which is subject to certain regulatory approvals, is expected to be finalised in the next few months.

Following the acquisition, the operations of Happy Family will remain unchanged, with Shazi Visram, founder and CEO, and Jessica Rolph, founding partner and COO, continuing to lead all sectors of the business.

Danone Baby Nutrition division executive vice-president Felix Martin Garcia said that the company is pleased with its acquisition in a fast-moving segment of the baby food market.

"Building on a business model that has proven its effectiveness, we plan to step up the development of Happy Family and its brands," Garcia added.

Shazi Visram said that by joining Danone, Happy Family 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 has a presence on five continents and the company holds a leading position in healthy food through its four businesses – Fresh Dairy Products, Baby Nutrition, Waters, and Medical Nutrition.

The company employs 102,000 people across its more than 190 production facilities and it generated sales of over €20bn in 2012.

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Image: Following the acquisition, Danone plans to step up the development of Happy Family and its brands. Photo courtesy of Danone.