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Danone Expands In Poland With Promedica Acquisition

By Reuters
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Danone Expands In Poland With Promedica Acquisition

French foods group Danone has bought Promedica, a Polish company specialising in care services for patients at home, as it expands in the profitable Specialised Nutrition market, a source familiar with the deal told Reuters.

The bolt-on acquisition, the terms of which were not disclosed, was sealed on March 31.

It will bring more scale to Danone in Specialised Nutrition in Poland, a country where the group has already a leading position, the source said.

Danone ranks number one in Medical Nutrition in Europe and fourth worldwide.

Staff from Promedica, a profitable company with sales growing at a double-digit rate, will administer Danone products to patients needing tube feeding, the source said.

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Read More: Danone CEO Inaugurates New Research And Innovation Centre In Paris

Restructuring Plan

The acquisition comes as Danone, maker of high-end infant formula brands such as Aptamil and Medical Nutrition brands such as Nutricia, has embarked on a restructuring plan that entails investing in worthwhile brands and innovation and disposing of underperforming assets.

Homecare is a growing category as more people suffering from chronic diseases can be treated at home. It is also seen as a cost-efficient alternative to expensive hospital stays.

With 2022 revenue of €8.32 billion, the Specialised Nutrition division comprises 30% of Danone's global revenue.

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The division's like-for-like sales growth rate of 10% last year outperformed the group's 7.8%. Its operating profit margin of 21.6% also topped the group's 12.2%.

Read More: Danone Eyes Better Margins As Fourth-Quarter Sales Top Estimates

News by Reuters, edited by ESM – your source for the latest A-Brands news. Click subscribe to sign up to ESM: European Supermarket Magazine.

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