Danone has sold its Chilean business to local food producer Watt’s, the Latin American business announced today (7 September).
According to the announcement made to the Chilean Stock Exchange, Watt’s will pay CLP16bn (US$24.2m), minus debt.
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The acquisition includes the plant the French food giant had in the central Chilean city of Chillán and the dairy brand Calán.
Danone and Watt’s have also agreed the terms for a licensing contract for the use of the Activia, Danone and Danone Light brands for a 15-year period.
According to Watt’s, the sale was agreed with Danone Chile on Tuesday afternoon and it is expected the authorities will approve the transaction in the coming months.
Watt’s manufactures products including margarines, oils, marmalades, fresh pasta and frozen meals.
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By GlobalDataContacted by just-food, Watt’s would not give further details on how Danone’s brands will be integrated into its existing dairy portfolio, with includes liquid and powdered milk, probiotics, butter, cheeses and creams, under the Loncoleche and Calo brands.
