Danone to acquire majority stake in Kate Farms in strategic nutrition partnership

Danone has announced plans to acquire a majority stake in Kate Farms, a USA-based company specializing in plant-based, organic nutritional products designed for both clinical and daily use. The agreement, which remains subject to regulatory approval and other customary closing conditions, marks a strategic move to expand Danone’s reach in the specialized nutrition sector.

Kate Farms, founded to serve patients with chronic conditions and dietary restrictions, produces a portfolio of plant-based formulas that cater to hospital, long-term care, and at-home settings. Its products are also increasingly used in everyday wellness regimes, making it a complementary fit for Danone’s diversified health and nutrition portfolio.

“Kate Farms is focused on helping people live their best lives through quality nutrition,” said Brett Matthews, Chairman & CEO of Kate Farms. “We are excited to be working alongside Danone, who share our mission. We are both focused on going above and beyond to help people with health needs and the medical professionals supporting those needs in the USA.”

As part of the agreement, Matthews will become Chairman & CEO of Danone’s North American Medical Nutrition division, once the transaction closes. The senior management team at Kate Farms will retain a minority stake in the combined business, indicating continuity and a shared vision for future growth.

Matthews emphasized the alignment between the two companies’ values: “It is rare that two companies come together by virtue of the same values and a philosophy of building a growth company that helps people live their best lives, delivered by team members who show their heart and expertise every day. As a business founded on and guided by deeply held values, it was important for us to partner with an organization that is aligned with our mission in this way, and we believe Danone is the perfect fit to continue to make nutrition the foundation of health.”

For Danone, the deal supports its long-term goal of enhancing science-driven, patient-centered nutritional offerings. Shane Grant, Danone Group Deputy CEO & CEO Americas, said the move builds on the company’s 125-year history in specialized nutrition.

“We are thrilled to join forces with Kate Farms and are looking forward to welcoming Brett and his team to Danone,” said Grant. “This partnership aligns perfectly with our science-based and patient-centered approach to specialized nutrition, and it marks another important milestone in Danone’s 125-year Specialized Nutrition history. Kate Farms’ innovative medical nutrition products expand our offerings, enhance our ability to provide better solutions for people with wide-ranging health needs, and support healthier lives, both in the USA and globally.”

Based in Paris, Danone employs more than 5,000 people across the United States, with brands spanning infant nutrition, medical nutrition, and consumer dairy and plant-based products. The acquisition of Kate Farms is expected to deepen Danone’s footprint in the US clinical nutrition market and accelerate its innovation pipeline through the addition of Kate Farms’ proprietary formulations.

The financial terms of the deal were not disclosed. However, it follows a series of recent moves by Danone aimed at bolstering its position in health-focused nutrition. Earlier investments in companies such as Harmless Harvest and partnerships with health systems have signaled a continued emphasis on science-backed, mission-driven brands.

Founded in 2011, Kate Farms has grown steadily in the USA, where its formulas are accepted by over 95% of US hospitals and covered by many insurance plans. The company’s plant-based formulas are often recommended by clinicians for patients who cannot tolerate traditional dairy or soy-based options.