Danone has looked ahead to the “platform” it will attain in India’s baby food market after sealing its takeover of the nutrition business of local firm Wockhardt Group, a year after agreeing on a deal.
The French food giant said on Friday (27 June) it had finalised the acquisition, which will see it enter India’s baby nutrition sector.
Danone had signed a deal worth EUR250m (US$306.2m) to buy the business last August. Speaking to analysts on Fridday after Danone reported its half-year results, CFO Pierre-Andre Terisse reflected on what the acquisition would mean for Danone.
“It took us a bit of time but it closed yesterday. It’s taken time as it often takes in this particular geography. In the meantime, the assets have performed very well,” Terisse said.
The Danone finance chief said Wockhardt’s nutrition arm had seen sales increase by 22% in the first half of 2012.
“We are getting a healthy business, which is going to be a very useful platform for baby and medical, which are two of our most dynamic businesses,” Terisse said.
Sales from Danone’s baby food division increased 11.7% on a like-for-like basis in the first half of 2012. Danone said the performance was led by its business in China, where it increased its market share.