Danone Clears Final UK Hurdle in €1bn Huel Buyout
Danone's acquisition of Huel has been cleared by the UK's Competition and Markets Authority, paving the way for the €1 billion deal to go ahead
Danone has received clearance from the UK's Competition and Markets Authority for its planned acquisition of Huel, a vegan meal-replacement brand. This decision removes the last significant obstacle to the deal, which is reported to value Huel at around €1 billion. The regulator's approval indicates that it found no grounds to require remedies or escalate to a formal phase-two investigation.
Background to the Deal
The acquisition was first agreed upon in March, with Danone describing it as a way to expand its position in functional nutrition. Huel, on the other hand, framed the deal as support for its international growth. The financial value of the transaction was not disclosed by either company, but it was widely reported to be roughly €1 billion.
A Fully Plant-Based Brand Joins a Mixed Portfolio
Huel produces a range of plant-based products, including nutritionally complete powders, ready-to-drink shakes, snack bars, and drinks. Its protein blends are made from pea, faba bean, brown rice, and hemp. The company was founded in 2015 and has since expanded from direct-to-consumer sales to over 17,000 UK retail stores.
Financial Performance and Celebrity Backers
Huel reported revenues of £254 million in its most recent financial year, a 19% increase. UK sales were up 26.5% to £139.3 million. The brand has also drawn attention for its celebrity backers, including Idris Elba and Jonathan Ross. Danone has tied the purchase to its Renew Danone strategy, which focuses on functional and specialised nutrition.
The acquisition is part of Danone's efforts to expand its position in the functional nutrition market. The company has previously acquired medical nutrition company Kate Farms and microbiome biotech the Akkermansia Company. With the addition of Huel, Danone is further diversifying its portfolio and strengthening its presence in the plant-based market.
| Category | Huel Revenue | UK Sales |
|---|---|---|
| Latest Financial Year | £254 million | £139.3 million |
| Percentage Increase | 19% | 26.5% |
Danone's acquisition of Huel is expected to support the latter's international growth, while also expanding Danone's position in functional nutrition. The deal is a significant development in the plant-based market, and it will be interesting to see how it plays out in the coming months.
