December 9, 2013
Sales of organic food and beverages are expected to experience a compounded annual growth rate (CAGR) of 15.5% from 2013 and to reach sales of $188 billion by 2019. White Wave Foods, which spun off of U.S. dairy company Dean Foods last year, has announced it is acquiring organic food brand Earthbound Farm for $600 million cash. White Wave announced in October 2012 that it plans to expand through acquisitions outside it corn products which include Silk Soy Milk and International Delight dairy creamers. Earthbound produces packaged salads, organic fruit and vegetables, dried fruits, and snacks with sales expected to reach $500 million in 2013. The two companies will continue to operate as separate businesses and White Wave expects the acquisition to add seven cents per share to its adjusted net earnings in the first fiscal year after closing. Upon completion of the deal, White Wave will supply products in the two most popular organic consumer categories – dairy and produce.
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