French food company Danone has acquired American baby food producer Happy Family, in an effort to strengthen its department of child nutrition, which last year already accounted for twenty percent of total company sales.
Fourth player on US market
Danone wants to finish the transaction over the next few months, but it still has to be approved by the authorities. The acquisition price is not being released, but according to The Wall Street Journal it would be several hundred million dollar for 92% of all shares.
Happy Family was founded in 2006 by Shazi Visram and it specialises in the production of organic baby food. With sales of sixty million dollar (about fifty million euro) it has ha market share of four percent in the US, putting it in fourth place.
Happy Family must grow
The takeover by Danone should give Happy Family quite the boost: especially in research and development and distribution the French company can help the American brand to shift into a higher gear.
For 2013 Happy Family is expecting a large rise in sales. The progress of brand can be ascribed to a combination of attention for healthy food and ease of use.