Food product manufacturer Danone entered talks on Tuesday to acquire a minority stake in France-based biscuit, dairy product, dessert and beverage producer Michel et Augustin.
The deal, which will involve Danone taking a stake of up to 40% according to Les Echos, will be the first to be conducted by the firm’s recently formed corporate venturing unit, Danone Manifesto Ventures. Michel et Augustin’s existing backers include investment holding company Artémis.
Founded in 2004, Michel et Augustin’s products include flavoured biscuits, yoghurts, fruit juices and confectionary. It recorded €40m ($44m) in sales in 2015, but Danone plans to help it expand internationally, particularly in the US.
France-headquartered Danone recently launched Danone Manifesto Ventures in New York City and expects the fund to be fully operational by autumn this year. Its brief is to find and invest in innovative companies with the potential for high growth whose values gel with Danone’s.
Portfolio companies will get operational support from Danone as well as funding and will gain access to its global teams who will share their experience. Danone has previously been an occasional corporate venturer, most notably investing in green chemicals producer Avantium.
– Image courtesy of Michel et Augustin