Danone Asia Pte Ltd, a subsidiary of Groupe DANONE S.A., has signed an agreement with Suntory Limited for the sale of its subsidiary Frucor, based in New Zealand and Australia, for an amount of over € 600 million.
This transaction stems from the recent refocus on natural mineral water and spring water based beverages and will allow DANONE to focus on its core business growth opportunities. Related proceeds will be allocated to debt repayment.
"Frucor has played an instrumental role in Danone's growth and innovation strategy over the past six years. We are convinced that this new step will allow Frucor to ensure its long term development within the beverages market" stated Emmanuel Faber, Co Chief Executive Officer of DANONE.
The transaction is subject to the approval by the New Zealand authorities.
With estimated sales of € 210 million, Frucor is the market leader in energy drinks throughout Australasia and the second-largest non-alcoholic drinks company in New Zealand. Frucor employs over 600 people across New Zealand and Australia and its brand portfolio includes fruit juices, fruit drinks, energy drinks, waters and soft drinks.
Suntory, founded in 1899, is the leading food and beverage company in Japan, with an extensive product portfolio consisting of Whisky, Beer, Wine, Healthy foods and Soft drink, with a turnover of US$15billion. Suntory has been significantly increasing its global presence through strategic alliance and acquisition in beverage industry in US, Europe and Asia Pacific.
Groupe DANONE is a Fortune 500 company and one of the most successful healthy food companies in the world. Its mission is to bring health through tasty, nutritious and affordable food and beverage products to as many people as possible. Fulfilling this mission is a major contributor to the Groupe's continuous fast growth. Groupe DANONE with 150 plants and around 76 000 employees has a presence in all five continents and over 120 countries. In 2007, Groupe DANONE recorded 12.7 billion euros sales.
Groupe DANONE enjoys leading positions on healthy food on four businesses: fresh dairy products (n°1 worldwide), waters (n° 2 on the packaged water market), baby nutrition (n°2 worldwide) and medical nutrition.
Listed on Euronext Paris, Groupe DANONE is also ranked among the main index of social responsibility: Dow Jones Sustainability Index Stoxx and World, ASPI Eurozone and Ethibel Sustainability index.