Thursday 7 July 2016 7:30 pm

Danone cooks up $12.5bn deal to buy alternative food company WhiteWave

French dairy giant Danone has struck a deal to acquire US premium food retailer The WhiteWave Foods Company.

Danone will pay $56.25 (£43.47) per share in the all-cash transaction, a premium of about 24 per cent to WhiteWave’s average close for the month. The deal has valued WhiteWave, which went public in 2012, at $12.5bn.

The Colorado-based health and alternative foods company generated $4bn in sales in 2015.

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Its brands include the free-from Alpro and Provamel lines, as well as Horizon Organic, Wallaby Organic and Silk.

“I believe this acquisition advances Danone’s mission and rich history of being at the forefront of emerging consumer trends and commitment to creating economic and social value,” Franck Riboud, Danone chairman, said in a statement.

“The Danone board of directors and strategy committee unanimously approved this transaction.”

Danone, which is the world’s largest yoghurt maker, announced last November it will aim for organic sales growth of five per cent by 2020.