Danone to acquire majority stake in Kate Farms

Danone announced plans to acquire a majority stake in Kate Farms, a California-based provider of plant-based, organic nutritional products.

The deal, if approved, will bring together two companies focusing on improving health through specialized nutrition. Danone said the acquisition will enhance its ability to serve people with a wide range of health needs, particularly in the United States.

Following the completion of the transaction, Kate Farms CEO Brett Matthews will take on the role of Chairman and CEO of Danone’s North American Medical Nutrition division. Kate Farms’ senior leadership will retain a minority stake in the combined business.

What they are saying

“We are thrilled to join forces with Kate Farms and are looking forward to welcoming Brett and his team to Danone,” said Shane Grant, Danone Group Deputy CEO, CEO Americas, in a release. “This partnership aligns perfectly with our science-based and patient-centered approach to specialized nutrition, and it marks another important milestone in Danone’s 125-year Specialized 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 U.S. and globally.”

“It is rare that two companies come together by virtue of the same values and a philosophy of building a growth company that helps people live their best lives, delivered by team members who show their heart and expertise every day,” said Matthews in a release. “As a business founded on and guided by deeply held values, it was important for us to partner with an organization 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.”