Danone has agreed to acquire a majority stake in Kate Farms, makers of a range of plant-based nutrition products for both medical and retail channels.
Kate Farms’ “highly highly complementary products will enhance Danone’s specialized nutrition offerings,” the company said in a press release this morning announcing the deal. Details on the financial transaction were not disclosed.
At the closing of the transaction, Brett Matthews, Kate Farms’ CEO, will serve as Chairman and Chief Executive Officer of Danone’s North American Medical Nutrition business.
Kate Farms’ senior management will retain a minority stake in the combined business.
Kate Farms was created in 2012 by entrepreneur Richard Laver, whose daughter Kate was born with cerebral palsy and at age three was placed on an all-liquid diet. Kate struggled to digest the available feeding tube formulas on the market, prompting Laver to develop a plant-based alternative.
“Michelle and I started Kate Farms in a tiny kitchen to save our daughter Kate’s life,” said Laver in a statement shared with BevNET. “She weighed only 15 lbs at 5 years old: we are so proud that Danone has recognized the need for the company and that our little girl’s formula will go on to help millions of people globally who need great nutrition.”
In subsequent years, the company expanded operations while moving into more channels and products; last month, Kate Farms introduced its plant-based Kids Nutrition drinks into 302 Target locations nationwide.
“Kate Farms is focused on helping people live their best lives through quality nutrition. We are excited to be working alongside Danone, who share our mission,” said Matthews. “Together, we can bring our innovative scientifically developed nutritional products to more and more people.
Building on Danone’s expertise, we can also expand internationally. It is rare that two companies come together by virtue of the same values and a philosophy of building a growth company that helps people live their best lives, delivered by team members who show their heart and expertise every day. As a business founded on and guided by deeply held values, it was important for us to partner with an organization that is aligned with our mission in this way, and we believe Danone is the perfect fit to continue to make nutrition the foundation of health.”
Kate Farms joins Silk in Danone’s portfolio of plant-based liquid nutrition products.
“We are thrilled to join forces with Kate Farms and are looking forward to welcoming Brett and his team to Danone,” said Shane Grant, Danone Group Deputy CEO, Americas. “This partnership aligns perfectly with our science-based and patient-centered approach to specialized nutrition, and it marks another important milestone in Danone’s 125-year Specialized Nutrition history. 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.”