Danone has acquired over 90% of US organic baby food firm Happy Family.

The Cow & Gate producer said today (13 May) it has signed an agreement to acquire an equity interest of over 90% in the firm. Danone said Happy Family is the fourth-largest player in the US baby food market.

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Launched in 2006, New York-based Happy Family specialises in baby and toddler products made with premium organic ingredients. It holds over 4% of the US baby food market and generates gross sales of around US$60m.

“We are delighted with this acquisition in an innovative and fast-moving segment of the baby food market,” said Felix Martin Garcia, executive VP of Danone’s baby nutrition arm. “Building on a business model that has proven its effectiveness, we plan to step up the development of Happy Family and its brands.”

The transaction is subject to the approval of the relevant authorities and is expected to be finalised in the next few months.

Danone reported first-quarter sales growth that beat estimates last month, boosted by 17.1% growth in baby nutrition sales.

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