Earthbound Farm Under Consideration for Sale by Danone
PARIS, FRANCE - Everyone wants in on the organic trend. Rumors are swirling that, after interest from potential private equity and corporate buyers surfaced, Danone is considering a sale of its San Juan Bautista, California-based organic produce distributor, Earthbound Farm LLC. The company was acquired during Danone’s purchase of WhiteWave Foods Company for $12.5 billion in 2017.
Looking to nab $500 million in a possible sale, Danone, which is headquarted in Paris, France, is currently working with financial advisors for a transaction while the going is hot. On the other hand, Danone may choose to hold onto the organic farm. No decision has been finalized, and a representative for Danone declined to comment, according to Bloomberg.
Earthbound Farm has been Danone’s opportunity to revamp its North American-based fresh foods business—which is dragging on earnings. Founded by Drew and Myra Goodman in 1984 when they started selling organic raspberries from their backyard garden at a farmstand on the side of the road, the organic farm’s vast array of products now include fresh, frozen, and dried fruits and vegetables. Danone's first course of action is turning this side of business around, and it is entertaining strategic options for its business endeavors moving forward, according to Chief Financial Officer Cecile Cabanis, Bloomberg reported.
If Danone chooses to sell Earthbound Farm, who will jump into the ring to pick it up, and how will the sale contribute to the ever-changing atmosphere within our industry? AndNowUKnow will keep you updated as prospects continue.