Danone will acquire more than 90% of the New York-based company, according to a statement. The transaction is subject to the approval of the relevant authorities and is expected to be finalized in the next few months, the Paris-based company said. The companies did not disclose a price.
Danone reported first-quarter sales growth that beat estimates last month, driven by baby-nutrition sales. The company got more than 20% of its total revenue from the division last year.
“We plan to step up the development of Happy Family and its brands,” Felix Martin Garcia, executive vice president of the Danone Baby Nutrition division, said in the statement.
Happy Family, which was founded in 2006, has more than a 4% share of the U.S. baby-food market, according to the statement. The company, which specializes in organic products, generates gross sales of more than $60 million with products including brown rice baby cereal and breakfast smoothies, Danone said.