DANONE Sells Frucor to Suntory

This transaction stems from the recent refocus on natural mineral water and spring water based beverages and will allow DANONE to focus on its core business growth opportunities.

24/10/08 Danone Asia Pte Ltd, a subsidiary of Groupe DANONE S.A., has signed an agreement with Suntory Limited for the sale of its subsidiary Frucor, based in New Zealand and Australia, for an amount of over € 600 million.

This transaction stems from the recent refocus on natural mineral water and spring water based beverages and will allow DANONE to focus on its core business growth opportunities. Related proceeds will be allocated to debt repayment.

“Frucor has played an instrumental role in Danone’s growth and innovation strategy over the past six years. We are convinced that this new step will allow Frucor to ensure its long term development within the beverages market” stated Emmanuel Faber, Co Chief Executive Officer of DANONE.

The transaction is subject to the approval by the New Zealand authorities.

With estimated sales of € 210 million, Frucor is the market leader in energy drinks throughout Australasia and the second-largest non-alcoholic drinks company in New Zealand. Frucor employs over 600 people across New Zealand and Australia and its brand portfolio includes fruit juices, fruit drinks, energy drinks, waters and soft drinks.