Danone Signs Agreement to Acquire 51 % of ProViva AB
Through this transaction, Danone will continue to grow ProViva in Sweden as well as have an option to build an international business based on the Swedish success story.
Jul 30 2010 --- Probi and Danone, through its affiliates, have signed exclusive license agreements with duration over 10 years, providing Danone with exclusive rights to use Probi’s Lp299v technology in probiotic fruit drinks and fruit juices for gut health outside North America.
Danone has also signed an agreement to acquire 51 % of ProViva AB from Skånemejerier. Through this transaction, Danone will continue to grow ProViva in Sweden as well as have an option to build an international business based on the Swedish success story. Probi’s royalty will be at competitive levels for the duration of the agreements.
Probi will receive a downpayment from Skånemejerier before the end of the year as compensation for rights granted by Probi and Probi has the opportunity to receive a further milestone payment from Skånemejerier subject to regulatory approvals of health claims.
“This is a long term collaboration with Danone which will secure revenues from our existing Swedish franchise and establish a potential for international growth. Danone is one of the most successful healthy food companies in the world and is better placed than anyone else to replicate the success of ProViva in Sweden in other parts of the world. We are also pleased that Danone has agreed to cooperate with Probi in the area of health claims and regulatory approvals” said Michael Oredsson, CEO of Probi. The above agreements are expected to close before end 2010 subject to conditions precedent primarily linked to pre-closing reorganization of ProViva AB.
