WhiteWave Foods acquires organic food firm Earthbound Farm

US-based WhiteWave Foods Company has completed the acquisition of Earthbound Farm, an organic food brand, in a $600m cash deal.

Earthbound Farm produces a wide range of organic fresh and frozen fruits and vegetables, dried fruits and snacks.

WhiteWave Foods stated that the acquisition reaffirms its leadership in the organic foods and beverages industry in North America.

The acquired entity, which will be based in San Juan Bautista, California, and operated as a separate unit, will allow WhiteWave to provide two gateways for consumers to enter the organic category – produce and dairy – and will also give the company a strong presence in the fresh foods category.

There will be no significant operational changes at Earthbound Farm due to the acquisition, the company noted.

WhiteWave chairman and CEO Gregg Engles said, "We look forward to partnering with our talented colleagues at Earthbound Farm as we continue to work to change the way the world eats for the better."

The deal was financed with borrowings under WhiteWave’s existing credit facilities and the company plans to increase its credit facilities by $500m to support future growth.

The principal amount outstanding under the company’s existing $1.84bn senior secured credit facilities commitments is about $1.29bn.

The agreement to take over Earthbound Farm from its shareholders, led by private equity firm Kainos Capital and Earthbound founders Drew and Myra Goodman, was signed in December 2013.

WhiteWave then stated that the deal would allow it to achieve approximately $0.07 cents per share to its adjusted net earnings in the first fiscal year.

The company produces plant-based foods and beverages, coffee creamers and beverages, and dairy products under brands including Silk, Horizon Organic and International Delight.

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Image: Earthbound Farm produces organic fresh fruits and vegetables. Photo courtesy of Olga Zielinska.