The WhiteWave Foods Company (WWAV – Snapshot Report) recently announced an agreement to acquire Eugene, OR-based manufacturer of dairy free products and beverages — So Delicious Dairy Free — from its existing shareholders for $195 million in cash.
So Delicious Dairy Free is known for its namesake brand of plant-based beverages, creamers, cultured products and frozen desserts which are dairy-free and non-GMO verified.
So Delicious was founded in 1987 by Mark Brawerman, who was the Chief Executive Officer until 2013. Its largest shareholder is Wasserstein & Co.
We believe the So Delicious Dairy Free brand, which has significant growth potential and new category opportunities, will prove to be a strategic fit for WhiteWave’s plant-based foods & beverages platform.
The deal is expected to close in the next few months and be accretive to WhiteWave’s earnings in the first 12 months following the deal closure.
In January this year, WhiteWave acquired leading organic greens and produce brand — Earthbound Farms — for $600 million. Earthbound has been a significant driver of sales and profits in the first half of 2014, contributing $146 million to sales in the second quarter.
In fact, this natural, organic and plant-based food/beverages maker has surpassed the Zacks Consensus Estimate for both earnings and revenues for four straight quarters now.
Buoyed by the solid first-half results and higher accretion from the Earthbound Farms acquisition, management increased the earnings outlook for the full year at the second quarter of 2014, while maintaining the same for sales.
The Zacks Rank #2 (Buy) company recorded earnings per share growth of 23.3% last year. We believe the company is poised well for this year, while its products enjoy strong demand due to the natural/organic food revolution. Shares of WhiteWave Foods have surged more than 63% year-to-date.
Source: Zacks
