China’s Yili to acquire American yogurt brand for US$850 million
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Chinese dairy company Yili is bidding to buy Stonyfield, one of the top organic yogurt manufacturers in the U.S. and a holding subsidiary of the French dairy giant Danone.
Stonyfield was founded in 1983 and Danone started purchasing Stonyfield shares from 2001 and gradually controlled the company. In 2016, Stonyfield’s turnover was about US$370 million and its net profit was US$50 million.
On March 31, 2017, Danone said that to accelerate its acquisition of WhiteWave, an American dairy and organic food maker, the company would sell its American subsidiary Stonyfield. This is a part of the antitrust agreement reached between Danone and U.S. Department of Justice in order to complete the WhiteWave acquisition. On April 13, 2017, Danone announced the completion of the WhiteWave acquisition.
Yili reportedly offered to buy Stonyfield for US$850 million. Yili’s competitors include American local dairy maker Dean Foods.
Questions & Answers
Q.Why is Danone selling Stonyfield?
Why is Danone selling Stonyfield?
Danone is selling Stonyfield as part of an antitrust agreement reached with the U.S. Department of Justice. This agreement was necessary for Danone to complete its acquisition of WhiteWave, an American dairy and organic food maker.
Q.What was Stonyfield's financial performance in 2016?
What was Stonyfield's financial performance in 2016?
In 2016, Stonyfield reported a turnover of approximately US$370 million. Its net profit for the same year stood at US$50 million, indicating a strong financial performance prior to the sale.
Q.When did Danone gain full control of Stonyfield?
When did Danone gain full control of Stonyfield?
Danone began purchasing shares in Stonyfield in 2001 and gradually increased its stake. Over time, Danone eventually controlled the company, though a specific date for full control isn't mentioned.
Q.Who are Yili's main competitors?
Who are Yili's main competitors?
The article mentions that Yili's competitors include American local dairy maker Dean Foods. This suggests Dean Foods operates in a similar market segment or geographic area to Yili's interests.
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