In order to provide more organics, dairy company WhiteWave Foods will soon own Earthbound Farm, maker of organic food products.
Current owners, Kainos Captial is expected to sell the asset for $600 million Reuters reported Monday.
"With Horizon Organic and Earthbound Farm, WhiteWave will now provide the two most popular gateways for consumers to enter into the organic category - produce and dairy," WhiteWave Chief Executive Gregg Engles told Reuters.
The news is the latest development since WhiteWave announced its intentions to branch away from Dean Foods last year. This included acquisitions, its main items such as Silk soy milk, and international delight creamers.
WhiteWave also hopes to run Earthbound as an individual entity, and keep changes to other aspects to a minimum when the deal is completed in 2014.
The agreement will be funded using borrowed money from WhiteWave's credit supply that it wants to increase $500.
According to Reuters, WhiteWave anticipates its shares for net earnings will increase seven percent.
Sales from organic food are expected to increase $188 billion from now until 2019, rising by 15.5 percent beginning this year. WhiteWave saw its New York Stock Exchange end last week at $21.78.
J.P. Morgan served as financial adviser for WhiteWave while Haynes, and Boone LLP had a legal adviser role.
Barclays and Houlihan Lokey financial advised Earthbound Farm. Weil, Gotshal and Manges, and Cooley LLP served as legal adviser.
Drew and Myra Goodman established Earthbound Farm in 1984 in California's Carmel Valley. The two are also offering up their portion of the deal for funds.
Earthbound makes packaged salads, organic fresh, frozen fruits, and vegetables, and dried fruits and snacks.
WhiteWave's brands include Silk, International Delight, Horizon Organics, Land O Lakes products, and Alpro, makers of soya, almond, and hazelnut drinks, yogurts, and desserts according to information on the manufacturers website.
