Danone Acquires Huel for 1 Billion Pounds

French food giant Danone has agreed to acquire British meal replacement company Huel in a deal reportedly worth around 1 billion pounds. The acquisition, announced on Monday, aims to bolster Danone's position in the growing functional nutrition sector and accelerate Huel's international expansion. The transaction is subject to regulatory approval and other closing conditions.

Huel, based in Hertfordshire, was founded in 2015 by entrepreneur Julian Hearn to offer nutritionally complete food products designed to simplify meals while delivering essential nutrients. The company produces ready-to-drink shakes in flavors such as banana, vanilla and chocolate, along with powders and snack bars. Starting as a direct-to-consumer brand, Huel has expanded into retail, now available in more than 25,000 stores worldwide, up from 11,250 the previous year. Its products, popular among fitness enthusiasts, emphasize plant-based nutrition.

The company's growth has been robust. For the 12 months ended July 31, 2024, Huel reported revenue of 214 million pounds, a 16 percent increase from the prior year. Pretax profits nearly tripled to 13.8 million pounds, with net profit rising to 13.1 million...