Danone agrees to acquire a majority stake in Kate Farms

Agreement for a majority investment

Danone has entered into a definitive agreement to acquire a majority stake in Kate Farms, a United States business supplying plant-based nutrition products for medical and everyday needs. The proposed transaction will expand Danone's specialized nutrition operations in North America. Financial terms have not been disclosed. Completion remains subject to customary closing conditions, including regulatory approval.

Kate Farms' senior management will retain a minority interest in the combined business after closing. Brett Matthews, Kate Farms' chairman and chief executive, is due to become chairman and chief executive of Danone's North American Medical Nutrition business. Matthews joined Kate Farms in 2015, working with founders Richard and Michelle Laver to develop its healthcare business.

Products and distribution

Richard and Michelle Laver founded Kate Farms in 2012. Its assortment includes nutritional formulas and shakes for children and adults, intended for oral consumption or tube feeding. The company supplies hospitals and consumers. At the agreement announcement, Kate Farms said its products were available in more than 1,400 United States hospitals, online, through Amazon and in selected retail stores. Its first national retail launch, a children's shake at Target, had taken place in March 2025.

Danone group deputy chief executive and Americas chief executive Shane Grant described the agreement as an expansion of the group's specialized nutrition offering. Matthews said working with Danone could help Kate Farms reach more people and expand internationally. These statements concern the companies' plans following the proposed combination; the regulatory closing condition still applied on 12 May 2025.

Danone's nutrition portfolio

Danone generated €27.4 billion in sales in 2024. The group had more than 90,000 employees and sold products in over 120 markets. Its businesses cover three categories:

• Essential Dairy & Plant-Based Products.
• Waters.
• Specialized Nutrition.

The specialized nutrition segment grew 5.3% in the first quarter of 2025 compared with the same period of 2024. Danone's United States operations employed more than 5,000 people at the time of the agreement. Grant linked the proposed Kate Farms investment to the group's existing American presence and its plans to develop specialized nutrition alongside its established dairy business.

Company and contacts

Danone. Address: 17 Boulevard Haussmann, 75009 Paris, France. Media relations: press@danone.com. Investor relations: investor.relations@danone.com. Website: https://www.danone.com/.