DENVER — The WhiteWave Co. has agreed to acquire Wallaby Yogurt Co. for approximately $125 million in cash.
American Canyon, Calif.-based Wallaby is a manufacturer and distributor of organic dairy yogurt products, including Greek and Australian yogurts and kefir drinks. Founded in 1994, Wallaby generated net sales of more than $45 million in the year ended June 2015, growing more than 20% over the 12-month period.
For WhiteWave, whose brands include Earthbound Farm, Silk, So Delicious and International Delight, the acquisition is expected to strengthen its yogurt portfolio and provide entry into fast-growing yogurt categories.
|Gregg Engles, chairman and c.e.o. of WhiteWave.|
“Wallaby also expands our yogurt manufacturing capabilities with the addition of a West coast production facility that complements the new yogurt plant that we opened last year in Pennsylvania,” said Gregg Engles, chairman and chief executive officer of WhiteWave, during an Aug. 7 conference call with financial analysts. “We believe there are significant expansion and growth opportunities as we combined Wallaby's expertise in manufacturing with our sales, marketing and innovation capabilities.”
The transaction is expected to close in the third quarter of 2015, subject to regulatory approvals and other customary closing conditions. WhiteWave expects the transaction will be neutral to earnings per share in 2015 and slightly accretive to earnings per share by the latter part of 2016.The announcement follows WhiteWave’s June acquisition of Vega Foods, a maker of vegan, soy-free and gluten-free powdered shakes and snack bars, for $550 million in cash.