Chile: Watt's to acquire Danone Chile

Watt's, the Chilean food firm, has announced that it is acquiring the Chile arm of dairy multinational Danone.

The deal includes 100% of the shares in Danone Chile SA, as well as a production facility in the city of Chillan and the domestic milk and yoghurt brand Calan. The Chilean firm said it had also agreed the principles of a licensing agreement for the Danone, Danone Light and Activia brands in its home market.

Both companies will continue development of Danone's brands in Chile, combining Watt's strong local presence and capabilities with Danone's innovation and expertise, the firms said in a statement.

"We are pleased to acquire the firm and to have reached a long-term agreement with Danone that will enable us to continue the success of the business in Chile" said Watt's general manager Rodolfo Véliz Möller. "Danone's brands and products are global leaders in terms of quality, innovation and prestige, and for Watt's it is a matter of pride to be associated with Danone, a global leader in food and drinks and an ideal partner to support Watt's growth in the Chilean dairy market".

The total deal value is said to be 16,000 million CLP ($23.9 million) minus net financial debt.

Source: Watt's / Emol