The company said the move would expand its presence in a “new and fast-growing” market.

French dairy and food products company Danone announced Monday that it has reached an agreement to acquire Huel, a U.K.-based maker of protein powders, meal replacement solutions and other plant-based “functional nutrition” products.

Danone officials said the deal would bolster its position in the “fast-growing ‘complete nutrition’ space” while providing Huel with opportunities for innovation and international expansion. Terms of the proposed deal were not disclosed by the companies, but sources close to the matter told Reuters that the price tag approached $1.15 billion.

“Combining their range and best-in-class digital capabilities with Danone’s global reach and deep nutritional expertise offers exciting opportunities into the new and fast-growing nutritionally complete space, in line with our ‘Renew Danone’ strategy,” Danone SA CEO Antoine de Saint-Affrique said in the announcement. “We look forward to learning from one another and unlocking new opportunities and growth for both businesses.”

“With Danone, we will now have the infrastructure, distribution and R&D capability to go further, into new markets and to more people, as demand for convenient, complete nutrition continues to grow,” added Huel CEO James McMaster.

The transaction remains pending subject to regulatory approvals and other closing conditions.

Source https://www.foodmanufacturing.com/ingredients/news/22963232/danone-to-acquire-functional-nutrition-company-huel-in-reported-1b-deal