WhiteWave Foods To Buy Earthbound Farm For Nearly $600 Mln Cash - Quick Facts

(RTTNews) - The WhiteWave Foods Co. (WWAV), a consumer packaged food and beverage company in North America and Europe, has agreed to acquire Earthbound Farm from its existing shareholders led by Kainos Capital and founders Drew & Myra Goodman, for about $600 million cash. WhiteWave intends to operate Earthbound Farm as a separate business unit, based in San Juan Bautista, California, and no significant operational changes are expected at Earthbound Farm.

Including the impact of purchase accounting, WhiteWave hopes that this acquisition would add nearly $0.07 cents per share to its adjusted net earnings in the first fiscal year, before transaction costs. This estimate is subject to the final closing balance sheet valuation.

WhiteWave plans to fund the acquisition with borrowings under its existing credit facilities. To provide continued capacity for future growth, the firm also plans to increase its credit facilities by $500 million, subject to lenders commitments. The company said it anticipates completing the increase to its credit facilities in December 2013.

The acquisition may close during the first quarter of 2014.