BNNY: Healthy Buyout–Could WWAV Be Next?

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Food companies have been hot in the merger and acquisition news lately, and that trend continued on Monday as organic food producer Annie’s (BNNY) was bought by General Mills (GIS) for $820 million cash. BNNY investor’s betting on the growing popularity of organic foods were fed a nice 37% premium on each share they owned.  BNNY closed at $33.51 and the cash buyout values the company at $46 a share.
 
Rumors of an Annie’s buyout have been whirling around since the stock fell to a low of 27.86 in early June from its all time high of $52.38 in October 2013.  Annie’s shareholders are happy with the offer, and now investors ask what food company will be gobbled up next?
 
Although there are many potential buyout candidates, our focus is on WhiteWave Foods(WWAV). WWAV, also in the organic food space,  produces healthy milk and dairy products with brands including Silk Almond Milk, Horizon Organic Milk, Land’s End Butter, and several more.    WhiteWave has been on a strong uptrend ever since being spun off of its parent company, Dean’s Food(DF), in May 2013.  
 
WhiteWave shares opened up 1.3% Tuesday at $37.06 giving the company a market cap of 6.4 billion.  Potential buyers include Coca-Cola (KO) , PepsiCo (PEP), or even General Mills (GIS).  Given that WhiteWave is rapidly growing revenues and offers an established product line in a popular, expanding market we see them as a prime takeover target.   

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