French food company Danone has signed a definitive agreement to divest its US organic salads business Earthbound Farm to Taylor Farms.

Financial details of the deal have not been divulged.

Based in Salinas, California, Taylor Farms is a leading North American producer of salads and fresh foods.

The divestiture of Earthbound Farm is in line with Danone’s portfolio management and capital allocation optimisation strategy.

With the completion of the deal, Earthbound Farm will be part of Taylor Farms Retail Group and will support the company’s growth in the organic fresh produce category.

“Taylor Farms stated that it will build on Earthbound Farm’s tradition of organic authenticity, new variety development and quality focus.”

Taylor Farms stated that it will build on ‘Earthbound Farm’s tradition of organic authenticity, new variety development and quality focus with expanded regional organic growing and processing capability to better serve Earthbound Farm’s customers and consumers across North America.’

Earthbound Farm was established in 1984 in California.

Since 2013, the organic salad producer has been part of WhiteWave Foods. Earthbound Farm joined Danone’s portfolio after the French food company acquired WhiteWave in 2017.

With the acquisition of WhiteWave, Danone significantly expanded its presence in the plant-based and organic food products segment.

In March, Danone opened a €240m Nutricia facility in Cuijk, the Netherlands, to meet the demand for specialised infant formula.

The facility produces standard infant formula, as well highly specialised formula for children with specific medical conditions such as a cow’s milk protein allergy.

The plant employs a specific manufacturing process called hydrolysation, which breaks down milk protein into smaller fragments.