By Aimee Look
Danone agreed to buy startup Huel for about $1.2 billion, scooping up a maker of plant-based food powders and meal-replacement drinks to bolster its nutrition portfolio.
The French food company is paying about 1 billion euros ($1.16 billion) for Huel, a person familiar with the deal said.
The deal for Huel will add ready-to-drink beverages, powders bars and bowls to the portfolio of a company that houses brands such as Activia yogurt and Evian water, Danone said. Huel's digital credentials, direct-to-consumer sales platform and popularity in the U.S., Europe and U.K. are drivers of its appeal, Danone added.
The U.K.-based nutrition company's revenue for fiscal 2025 is estimated to have exceeded 250 million pounds, the person said. For the year ended July 31, 2024, Huel reported sales of 214 million pounds.
For fiscal 2025, its earnings before interest, taxes, depreciation and amortization margin is expected to be around 10%, according to the person. This compares with a margin of 8.5% the year prior.
The nutrition company's valuation has soared off the back of rising popularity for the category. In the U.K., purchases of functional drinks marketed for specific health claims rose 13% year-over-year to January, according to data collector Worldpanel by Numerator.
So-called functional drinks are sold at a premium to other beverages, costing four times as much as soft drinks, at around 4.69 pounds a liter, the report said.
Huel's last public fundraise in 2022 put the company's valuation at $560 million, in a round led by venture-capital group Highland Europe. British actor Idris Elba and his wife Sabrina Dhowre Elba participated in the $24 million round, alongside TV presenter Jonathan Ross. Steven Bartlett, of the Diary of a CEO podcast, and Grace Beverley, founder of athletic apparel brand Tala, were also investors, according to Highland Europe. Morgan Stanley also invested in the company.
The addition of a sizable fast-growing brand in the protein space should help Danone's organic sales growth and opens up opportunities to scale up Huel, even if the deal will have a limited effect on earnings in the next year, analysts at J.P. Morgan wrote in a note to clients.
Write to Aimee Look at aimee.look@wsj.com
(END) Dow Jones Newswires
March 23, 2026 07:07 ET (11:07 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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