Danone has completed the acquisition of Kate Farms, a US provider of plant-based clinical nutrition, from Novo Holdings.

Founded in 2012, Kate Farms develops plant-based, organic nutritional formulas for patients with medical conditions and individuals needing daily nutritional support. Its products are used in more than 1,400 hospitals across the US and are known for being allergen-free and clinically supported.

The acquisition, which first announced in May, reflects Novo Holdings’ investment strategy focused on scalable, science-backed health solutions.

Kate Farms will operate under Danone’s North America Medical Nutrition business. Brett Matthews, who has led Kate Farms since 2015, will now serve as chairman and CEO of Danone North America Medical Nutrition.

Kartik Dharmadhikari, partner of Novo Holdings, said: "Kate Farms has emerged as a category leader in specialised medical nutrition by pairing scientific and clinical innovation with a deep understanding of patients' needs – particularly for those who cannot rely on standard diets. Novo Holdings is proud to have supported the company's growth from its early stages to this landmark transaction."

Matthews added: "Becoming part of Danone...is a really proud moment for Kate Farms and will make a positive difference to the people, families and communities we serve. Together, we are in a better position to provide high-quality nutrition to those with a wide range of health needs."

"We are deeply appreciative of the support that investors Novo Holdings, Goldman Sachs, Kaiser Ventures, Main Street Advisors, Aliment, Coeffecient, Ithaka and individual investors have provided to Kate Farms since the early stages of our company's growth. Partners like Novo Holdings have enabled us to accelerate our business' trajectory, ultimately resulting in this exciting new chapter with Danone."

Terms of the transaction were not disclosed.

Top image: © Kate Farms