(Title Repeat) * Agreement to buy the US company at $ 56.25 / per share * This price represents a $ 12.5 billion enterprise value * The transaction will be accretive from the first year * $ 300 million expected synergies in 2020. * the action registers the largest increase in the CAC 40 (updated with conference call, during, analyst comment)) by Noelle Mennella and Benjamin Mallet PARIS, July 7 (Reuters) – Danone DANO .PA announced Thursday the acquisition for $ 12.5 billion (€ 11.3 billion) of US WWAV.N WhiteWave Foods Company, a transaction that will allow the French group to become the world leader in highly market dynamic and organic products to double in size in the United States. Danone, whose CEO of WhiteWave, Gregg Engles, will become director, will benefit more directly from the dynamism of the United States, in contrast to the European economic gloom, its main market. Following the transaction, expected to close before the end of the year, the share of sales that will carry the French group in the US will increase from 12 to 22% of its worldwide turnover. This operation, carried out at the price of 56.25 dollars per share, is the largest yet made by Danone since the acquisition in 2007 of Dutch Numico for € 12 billion. This is the first group from Emmanuel Faber major operation took senior management in late 2014. “This acquisition will accelerate our path to strong, sustainable and profitable in 2020. We will better respond to consumer trends and represents a major step in Danone’s commitment to conduct a Food revolution, “said the CEO at a conference with analysts. This “friendly” was welcomed by a sharp rise in the title Danone, to 13.10 clinching 3.8% to 65.7 euros thus achieving the best performance of the CAC 40 (+ 1.2%). “It’s a good deal that improves the risk profile of Danone, as the group will be better distributed geographically in a relatively natural category for them. The only downside is that it’s a little early for the next six months they were more advanced in their own transformation plan, “said Pierre Tegner, an analyst at Natixis. The group anticipates accretive “solid” on its earnings per share (EPS) in the first year after the operation, and an accretion of more than 10% including the expected synergies, representing an impact on operating income of about $ 300 million in full-year 2020. a MARKET fOR 35 bILLION WhiteWave, which achieved a turnover of nearly $ 4 billion (+ 9.5%) in 2015, has a broad portfolio of brands (Silk, Horizon organic, Earthbound Farm), focused on organic dairy products, creams for coffee and vegetable alternatives to milk. Since the IPO of the company in 2012, its sales have experienced an average annual growth rate of 19% and operating income doubled. WhiteWave employs approximately 5,500 people. The US group brands will join those whose Danone Stonyfield – bio yogurt purchased in the 2000s that helped launch the brand in France “The 2 Cows” – and Happy Family, a US company specializing in organic baby food . With this set, Danone will become a leader on the market of fresh products of plant origin which weighs 35 billion and whose growth is three times higher than conventional food products. The redemption WhiteWave will be fully funded by debt, however Danone anticipating maintaining its credit profile in category “strong investment grade”. The statement: http://reut.rs/29vWRol Presentation: http://bit.ly/29mFHXf (Edited by Jean-Michel Belot)
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