Danone announced Monday that it has reached a deal to acquire a majority stake in Kate Farms, a California maker of organic and plant-based shakes and formulas.
The French food company said that the move would bolster its specialty nutrition portfolio.
“Kate Farms’ innovative medical nutrition products expand our offerings, enhance our ability to provide better solutions for people with wide-ranging health needs, and support healthier lives, both in the U.S. and globally,” Shane Grant, the CEO of the Danone’s Americas operations, said in the announcement.
Following the closing of the transaction, Kate Farms CEO Brett Matthews will become chairman and CEO of Danone’s medical nutrition business in North America. Kate Farms’ senior management will also have a stake in the combined company.
“Together, we can bring our innovative scientifically developed nutritional products to more and more people,” Matthews said.
The deal remains subject to customary closing conditions, including approval from regulators. Additional details, including financial terms, were not disclosed.
