Danone has agreed to sell its subsidiary in Chile to local food company Watt’s for CLP 16 billion ($24 million).
The deal includes all of Danone Chile’s assets, including a manufacturing plant in the city of Chillán – 55 miles east of Concepción – and the Calán brand, which includes lactose and non-lactose yogurts, probiotic drinks and flavoured milks.
Watt’s is a manufacturer of dairy products, beverages and ready-made foods – and is the domestic leader in the jam, juice, edible oil and margarine categories. It made profit of CLP 23.4 billion ($35.3 million) from CLP 386.2 billion’s ($581 million) worth of turnover in 2015.
The Santiago-based company has also signed a separate licensing contract with Danone for the Activia, Danone and Danone Light brands in Chile over the next 15 years.
It said that the acquisition would allow it to “combine the capabilities and strong local presence” of Danone’s brands in Chile with Watt’s innovation and know-how. The deal is expected to be finalised in the next few months, subject to customary closing conditions.
Watt’s CEO Rodolfo Véliz Möller said: “We are pleased to acquire this company and to achieve this long-term agreement with Danone, which will allow us to continue the work done so far by them in Chile. The products and brands of Danone are world leaders in quality, innovation and prestige, and it’s a source of pride for Watt’s to be associated with Danone – a leading global food company.
“[The acquisition is] ideal to support Watt’s growth strategy in the Chilean dairy market.”
Source: FoodBev
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