French dairy giant Danone has announced that it is to acquire WhiteWave Foods, a US-based manufacturer of branded health foods, in a deal worth $12.5bn including debt. The acquisition price of $56.25 per share, or almost 25 times earnings (EBITDA), means this new business has not come cheap for Danone.

WhiteWave manufactures a range of health-focused dairy and consumer brands including Horizon organic milk and Wallaby organic Greek yoghurts. European consumers will be more familiar with its Alpro brand, which produces a number of soya-based milk, yoghurt and cream products.

WhiteWave generated sales close to $3.9bn in 2015, an increase of more than 12% compared with the previous year. The group had operating profits last year of $332m with margins expanded 80 basis points to a very strong 8.6%. Earnings (EBITDA) for the year were $508m.

Danone say the acquisition of WhiteWave is a “perfect match” and doubles the size of the group’s business in the US market. Danone expects the deal will create synergies of $300m by 2020. It added the takeover will create a global leader strongly aligned with consumer trends for healthier food and drink products.

Shares in Danone have risen more than 4% in early trading on Thursday close to €66, following the announcement. WhiteWave shares were up less than 1% to more than $47.