Danone intends to buy Royal Numico
July 09, 2007
by FoodBusinessNews.net Staff
PARIS — Groupe Danone S.A. intends to make a cash offer of €55 ($75) in cash per ordinary share for baby food company Royal Numico N.V. The companies expect to reach a definitive merger agreement in coming weeks, and the offer totals about €12.3 billion ($16.8 billion).
"The price Groupe Danone is offering today is a reflection of the outstanding quality and positioning of Numico as one of the world’s leaders in healthy nutrition," said Franck Riboud, chairman and chief executive officer of Groupe Danone. "The combination of the two groups will create a unique food company."
The acquisition of Royal Numico will help reinforce Danone’s position as a leader in the global consumer goods industry, and Royal Numico’s experience with growing markets in baby food and clinical nutrition around the world will give Danone another means to grow.
Danone intends to keep the current organization of Royal Numico’s businesses and operate it as a new division in a growing Danone group. In addition, Royal Numico will continue to have its headquarters in Schiphol, The Netherlands.
"Numico enjoys today very strong market positions and very attractive prospects, and the proposed offer by Danone is a recognition of the strength and quality of the group," said Jan Bennik, chief executive officer and president of Royal Numico. "I am confident that a combination with Danone and the position of Numico within the enlarged Danone group will ensure its continued growth momentum for the future."