Danone SA (ADR) (OTCMKTS:DANOY) will be acquiring WhiteWave Foods Co (NYSE:WWAV) for $10 billion.
Danone will be paying $56.25 per share for WhiteWave. The transaction will be completed with cash and has already been approved by both companies’ Board of Directors. The offer represents a 24% premium over WWAV’s 30-day average closing price.
Danone noted that the transaction would include benefits for both companies. It will expand it’s own presence in North America and will also give it a large portfolio of products. The company also expects EBIT synergies of $300 million by 2020.
Danone will add WhiteWave CEO Gregg Engles to its Board of Directors after the transaction is completed. It still needs approval from regulators and shareholders. The deal is expected to close by the end of 2016.
DANOY shares were up 2% and WWAV shares were up 18% as of Thursday morning.
More From InvestorPlace:
