January 4, 2024

By Lynda Kiernan-Stone, Global AgInvesting Media

Platinum Equity announced it has signed a definitive agreement to acquire Horizon Organics, the largest USDA-certified organic dairy brand in the world and a pioneer in the dairy sector, from Danone for an undisclosed amount. 

The deal also includes Wallaby, a popular Australian-inspired, Greek-style, organic and premium yogurt brand. 

Danone explained that the sale of its premium U.S. organic dairy business is a result of its Renew Danone strategy – a portfolio review and asset rotation program originally announced in March 2022.

“As part of our Renew Danone strategy, we committed to a portfolio review and asset rotation for businesses that fell outside our priority growth areas of focus to drive value creation,” said Antoine de Saint-Affrique, CEO, Danone.

“Today marks an important milestone in delivering this commitment while giving the Horizon Organic and Wallaby businesses the opportunity to thrive under new leadership.”

“This sale, once completed, will allow us to concentrate further on our current portfolio of strong, health-focused brands and reinvest in our growth priorities.”

Platinum Equity

Founded in 1995 by Ton Gores, Platinum Equity has completed more than 450 acquisitions over the course of its existence. Currently, the firm has approximately $47 million in AUM and a portfolio counting 50 operating companies in a broad range of business markets.

If going by the numbers, adding organic dairy to its portfolio is a smart move. As consumers continue to be dialed in on their purchasing choices, organic foods and beverages tick off multiple requirements of nutrition, sustainability, animal welfare, and environmental responsibility. 

Within this sector, the $23 billion global organic dairy sector has seen a steady CAGR of 6 percent over the past decade, and is expected to see a CAGR of 6.5 percent from 2023-2028 to reach a value of $36 billion, while the North American organic dairy sector is valued at $68 billion, of which, organic milk accounts for $17 billion. 

Drilling down even further, the organic milk category saw demand grow at a 5 percent CAGR between 20118-2022, while the market is forecast to see a growth CAGR of 6.5 percent to reach a value of $319.36 million by the end of 2033. 

Horizon has been a pioneer in this industry, producing organic milk since 1991 and remaining a leader in the category working with more than 600 family farms in the U.S.

“Horizon Organic is an iconic name in dairy that is well recognized and beloved by consumers,” said Louis Samson, co-president, Platinum Equity.

“The brand has earned a reputation for quality and innovation that is unmatched in the industry. We appreciate Danone’s confidence in our ability to build on that legacy and support Horizon Organic’s growth as a standalone company.”

The acquisition of Horizon Organic and Wallaby from Danone, or the carve out of global businesses that have been part of a large corporate entity, tracks for Platinum Equity, which has acquired businesses from companies such as Ball Corporation, Caterpillar, ConAgra, Emerson Electric, Ingersoll Rand, and Johnson & Johnson, among others.

Its current portfolio includes Biscuit International, a European producer of sweet biscuits, wine producer Fantini Group Vini, and seafood company Iberconsa, and previous holdings include food ingredients distributor JM Swank which was acquired from ConAgra, and Harvest Meat Company, a U.S. distributor of packaged meat and bakery products. 

“We are excited about Horizon Organic’s potential as an independent business with a renewed sense of focus and a commitment to investing in its success,” said Adam Cooper, managing director, Platinum Equity.

“We have a lot of experience supporting food and beverage businesses. We look forward to partnering with Horizon Organic’s management team to ensure a seamless transition and chart a path for continued growth and expansion.”

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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