Danone has entered into a definitive agreement to acquire a majority stake in Kate Farms, a US plant-based and organic nutrition brand, for an undisclosed sum.
Headquartered in California, Kate Farms produces a range of everyday and specialised nutrition products – such as children’s drinks and medical nutrition shakes – made from organic, plant-based ingredients.
Danone said the partnership will allow Kate Farms’ ‘highly complementary’ products to enhance its specialised nutrition portfolio. The dairy giant added that the two companies share a ‘commitment to offer nutritional solutions that positively impact people’s health,’ aiming to support improved standards of care to better serve US communities.
Through the deal, Kate Farms’ products will reach a wider group of consumers and patients with a broad range of health needs. Among its specialised nutrition portfolio, the brand offers a diverse range of products including blended paediatric meals designed for tube feeding devices, and renal support drinks designed to meet the needs of people on dialysis.
Following the closing of the transaction, which is subject to customary closing conditions including regulatory approvals, Kate Farms’ CEO, Brett Matthews, will serve as chairman and CEO of Danone’s North America medical nutrition business. Kate Farms’ senior leadership team will retain a minority stake in the combined business.
Commenting on the partnership, Matthews said: “Together, we can bring our innovative, scientifically developed nutritional products to more and more people. Building on Danone’s expertise, we can also expand internationally.”
He added: “As a business founded on and guided by deeply held values, it was important for us to partner with an organisation that is aligned with our mission in this way, and we believe Danone is the perfect fit to continue to make nutrition the foundation of health”.
Danone’s group deputy CEO, Shane Grant, said: “This partnership aligns perfectly with our science-based and patient-centered approach to specialised nutrition, and it marks another important milestone in Danone’s 125-year specialised nutrition history”.
“Kate Farms’ innovative medical nutrition products expand our offerings, enhance our ability to provide better solutions for people with wide-ranging health needs, and support healthier lives, both in the US and globally.”
