France’s Danone said on Thursday it would double the size of its US business by buying organic foods producer WhiteWave Foods in a deal worth $12.5 billion, including some $2.1 billion of debt.

The purchase will help the French company to pursue affluent consumers by adding WhiteWave’s popular health food offerings such as Silk almond milk, Earthbound Farm Organic salad and Horizon organic milk to its product range as it struggles with setbacks in more challenging markets such as Brazil and Russia.

It is the first major transaction by Emmanuel Faber who took over as Danone’s chief executive in 2014 and has vowed to return the group to “strong profitable and sustainable growth” by 2020.

Danone, best known for its yogurts Activia and Actimel, said it was offering $56.25 per share in cash to value WhiteWave’s equity at $10.4 billion, making it Danone’s largest acquisition since the purchase of Dutch baby foods group Numico in 2007.

“We are creating a truly global leader in line with lasting consumer trends for more healthier options,” Faber told a call with analysts.
Shares in WhiteWave closed trading on Wednesday at $47.43, while Danone said its offer represented a 24 percent premium to WhiteWave’s 30-day average closing price.

WhiteWave’s products have outperformed mainstream packaged food businesses in recent years as they are in line with a consumer shift toward natural foods and healthier eating.

The US company has been seen as an attractive takeover target since its spin-off from Dean Foods, especially for companies like General Mills and Campbell Soup that have been buying healthier brands or reformulating their existing products.

“WhiteWave is the fastest growing U.S food company (10 percent Compounded Annual Growth Rate like for like sales over the last 3 years, 20 percent including acquisitions) and an excellent fit with Danone, focusing on organic, dairy foods,” said Canaccord Genuity Limited analysts.