Danone Asia Pte Ltd, a subsidiary of Groupe Danone SA, has entered into an agreement for the sale of its Amoy businesses to Ajinomoto Co, Inc. for a total consideration of about EUR190m.
Amoy is engaged in the production, marketing and sale of Asian sauces and frozen foods mainly to the Hong Kong, mainland China, US and UK markets under the Amoy brand.
Following the announcement of the divestiture of HP Foods and Lea & Perrins in June 2005, the sale of Amoy marks the completion of the Danone’s efforts in refocusing its operations on three core strategic businesses – Fresh Dairy Products, Water and Non-alcoholic Beverages, and Biscuits.
The transaction takes effect as from today (16 January). Groupe Danone will book an after tax capital gain in excess of EUR100m in its 2006 accounts.
In 2004 Groupe Danone posted sales of more than EUR2 billion in Asia.
Amoy had an estimated turnover of around EUR77m in 2005.
