Danone announces the sale of Vega as part of its portfolio review

Rhea-AI Summary

Danone has signed an agreement to sell its plant-based nutritional products brand, Vega, to WM Partners, a US-based private equity firm. This sale is part of Danone's strategy for capital allocation optimization and follows a portfolio review initiated in October 2020. The transaction's closing is contingent on customary conditions.

Positive

• Strategic divestment of Vega aligns with Danone's capital allocation optimization goals.
• The sale allows Danone to focus on core brands and potentially improve financial performance.

Negative

• None.

Press Release – Paris, June 17, 2021

Danone announces the sale of Vega
as part of its portfolio review

Danone announced today that it has signed an agreement to sell Vega, the Canada and U.S. plant-based nutritional products brand, to funds managed by WM Partners, a US-based private equity investment firm focused on the health and wellness industry.

The sale of Vega is part of Danone’s continuous capital allocation optimization and of the strategic review of Danone’s portfolio of brands, SKUs and assets announced in October 2020.

The closing of the transaction is subject to customary conditions.

About Danone (www.danone.com)

Danone is a leading multi-local food and beverage company building on health-focused and fast-growing categories in 3 businesses: Essential Dairy & Plant-Based products, Waters and Specialized Nutrition. With its ‘One Planet. One Health’ frame of action, which considers the health of people and the planet as intimately interconnected, Danone aims to inspire healthier and more sustainable eating and drinking practices. To accelerate this food revolution and create superior, sustainable, profitable value for all its stakeholders, Danone has defined nine 2030 Goals, and paved the way as the first listed company to adopt the “Entreprise à Mission” status in France. With a purpose to bring health through food to as many people as possible, and corresponding social, societal and environmental objectives set out in its articles of association, Danone commits to operating in an efficient, responsible and inclusive manner, in line with the Sustainable Development Goals (SDGs) of the United Nations. By 2025, Danone aims to become one of the first multinational companies to obtain B Corp™ certification. With more than 100,000 employees, and products sold in over 120 markets, Danone generated €23.6 billion in sales in 2020. Danone’s portfolio includes leading international brands (Actimel, Activia, Alpro, Aptamil, Danette, Danio, Danonino, evian, Nutricia, Nutrilon, Volvic, among others) as well as strong local and regional brands (including AQUA, Blédina, Bonafont, Cow & Gate, Horizon Organic, Mizone, Oikos, Prostokvashino, Silk). Listed on Euronext Paris and present on the OTCQX market via an ADR (American Depositary Receipt) program, Danone is a component stock of leading sustainability indexes including the ones managed by Vigeo Eiris and Sustainalytics, as well as the Ethibel Sustainability Index, the MSCI ESG Indexes, the FTSE4Good Index Series, Bloomberg Gender Equality Index, and the Access to Nutrition Index.

Attachment

• PR_Danone_170621

FAQ

What is the significance of Danone selling Vega?

The sale is part of Danone's strategy to optimize capital allocation and streamline its brand portfolio.

Who bought Vega from Danone?

Vega was sold to WM Partners, a US-based private equity firm.

When was the Vega sale announced?

The announcement was made on June 17, 2021.

What is Danone's stock symbol?

Danone's stock symbol is DANOY.

What are Danone's future business strategies?

Danone aims to focus on its core brands and enhance its financial performance through strategic divestments.