Seeking Alpha

WhiteWave to acquire Earthbound Farm for $600M in cash

  • WhiteWave Foods (WWAV) is acquiring Earthbound Farm - the largest organic produce brand in North America - for $600M in cash
  • The acquisition is expected to be accretive to EPS (+$0.07 before transaction costs) in the first year after close. Subject to regulatory approvals etc., it is expected to be completed during Q1 2014. WhiteWave plans to operate Earthbound Farm as a separate business unit.
  • Earthbound's anticipated 2013 net sales are over $500M.
  • WhiteWave will fund the acquisition with borrowings under its existing credit facilities, and intends to increase its credit facilities by $500M to fund further growth.
Comments (1)
  • abhay_agarwal
    , contributor
    Comments (42) | Send Message
     
    +0.07 accretive means this stock should go up by a buck at least based on the current PE ratio. Looks like a good deal.
    9 Dec 2013, 08:01 AM Reply Like
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