Danone’s $10 billion u. s. deal adds soy milk, kale to menu – bloomberg

“The purchase will allow us to double the size of our U.S. Business ideas with low investment and high profit business and become the world leader in organic,” Faber, who joined Danone in 1997 and became CEO in October 2014, said. High profit business opportunities “I am convinced Danone is uniquely positioned to continue WhiteWave’s development.”

WhiteWave soared as much as 20 percent to $56.82 in early U.S. Business with high profit trading, exceeding Danone’s bid, and analysts said it may attract other suitors. Today high profit shares At a Paris news conference, Chief Executive Officer Gregg Engles said that in the four years that WhiteWave has been a public company, its high growth rate has made it the subject of deal speculation. Best business ideas with low investment with high profit He didn’t say whether there were other bidders.

“With synergies likely at least as large for other strategics, and with debt financing cheap, we wouldn’t be surprised to see competing bids emerge,” John Baumgartner, an analyst at Wells Fargo, said in a note. Low budget high profit business WhiteWave will have to pay Danone $310 million to back out of the deal, according to a regulatory filing.

The acquisition would make Danone the global leader in fresh dairy and health-food brands including Horizon milk, Wallaby Organic yogurt and Earthbound Farm packaged salads as consumers increasingly shun processed foods perceived as unhealthy. High profit products to sell The deal is the second potential takeover in the food industry in recent weeks, following Mondelez International Inc.’s advance towards Hershey Co., which the chocolate maker snubbed. Low investment high profit business in bangalore Both deals aim to beef up the acquirer’s presence in the U.S.

In recent years, dairy milk’s reputation as nature’s perfect food has suffered as consumers question its nutritional merits as well as the environmental costs and treatment of animals housed at big industrial farms.

Low investment and high profit business The U.S. High profit margin industries organic-food market expanded 11 percent in 2015 to $43 billion, while the overall food industry grew 3.3 percent, according to the Organic Trade Association.

Unit sales in Danone’s fresh-dairy business have fallen for two years straight, weighed down by a slump in Brazil and declining demand in Russia and Europe. High profit items to sell ‘High-Growth Category’

“The key question to our mind is the real strength of the WhiteWave brands,” wrote Jeff Stent, an analyst at Exane BNP Paribas. High profit shares “To what extent has WhiteWave’s success been less about the brands and more about first-mover advantage in a high-growth category. High profit crafts Time will tell.”

Denver-based WhiteWave began trading in 2012 after U.S. Low cost high profit business dairy company Dean Foods Co. Low cost high profit shares spun off the unit, which was its most profitable business. Small business with high profit margin in india Investors have speculated since then that the company would become an acquisition target.

Asked about WhiteWave on an earnings call Thursday, PepsiCo Chief Financial Officer Hugh Johnston said he wouldn’t comment on specific companies. Low investment high profit business in kerala “But I can tell you we’ve looked at everything in the past, and if we were interested in anything, we would have acted upon it,” he said.

Braunstein and Woolery announced in February that their firm, Hudson Executive Capital LP, had bought shares in six companies, including WhiteWave, with an eye to nudging them to take steps that would boost their stock prices. High profit agriculture business in india The investors said they wouldn’t pursue proxy fights or publicly berate companies, preferring “constructive engagement.” Yogurt, Water

Sales at WhiteWave will increase about 11 percent this year, based on the average of analyst estimates, after doubling since 2010 on rising demand for more healthful beverages and food, data compiled by Bloomberg show. North America accounted for 86 percent of the company’s $3.9 billion in revenue last year, with Europe contributing the rest.

Growth like that doesn’t come cheap — Danone is paying about 26.2 times earnings before interest, tax, depreciation and amortization for WhiteWave, according to data compiled by Bloomberg. Businesses with high profit margins That’s well above the median multiple of 14.8 times earnings paid by buyers in acquisitions of dairy companies over the past five years.

The WhiteWave purchase, to be funded through debt, will boost results in the first year after closing, the maker of Activia yogurt said. Low value high profit shares Danone expects a $300 million boost to operating profit by 2020. Business with less investment and high profit North American sales will be 22 percent of Danone’s total revenue after the purchase, compared with 12 percent now.

“This deal should go through with the minimum of regulatory reviews,” said Duncan Fox, an analyst at Bloomberg Intelligence. Profit margin high or low “There will be some minor overlaps in the U.S., which is 85 percent of WhiteWave’s business, but Danone doesn’t have anything of note within the key areas.”

The purchase values WhiteWave at $12.5 billion including net debt and other liabilities. Low capital high profit business ideas The companies expect to complete the deal this year. Retail business with high profit margin Lazard Ltd. Low investment high profit business ideas in india advised Danone, while Goldman Sachs Group Inc. Retail products with high profit margins advised WhiteWave.

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