Danone has agreed to acquire Huel as it looks to strengthen its position in functional nutrition and expand into the fast-growing complete nutrition category.

The food giant said the deal would bring the UK-founded brand into its portfolio, adding a business known for its nutritionally balanced meal products across ready-to-drink formats and powders.

The acquisition forms part of Danone’s Renew Danone strategy and is intended to deepen its presence in health-focused categories while extending its reach into the increasingly popular complete nutrition space.

Huel has built a strong following across the UK, Europe and the US, supported by a powerful direct-to-consumer model, growing retail presence and what Danone described as “best-in-class digital execution”.

Danone said combining Huel’s brand strength and digital capabilities with its own scale, nutritional expertise and global footprint would help accelerate growth, innovation and international expansion.

The transaction remains subject to customary closing conditions, including regulatory approvals.

Danone chief executive Antoine de Saint-Affrique said: “We are delighted to welcome Huel and the Huel team into the Danone family. What they have achieved in the fast-growing complete nutrition space fully resonates with Danone’s mission of delivering health through food.

“Combining their range and best-in-class digital capabilities with Danone’s global reach and deep nutritional expertise offers exciting opportunities into the new and fast-growing nutritionally complete space, in line with our Renew Danone strategy.”

Huel chief executive James McMaster said the deal marked the next stage of growth for the brand, which has spent the past decade building out its proposition in convenient, nutritionally complete food.

He said: “We’ve grown into an omnichannel business with a strong direct-to-consumer foundation, an expanding international footprint, and a retail business that’s scaling quickly.

“With Danone, we will now have the infrastructure, distribution and R&D capability to go further, into new markets and to more people, as demand for convenient, complete nutrition continues to grow.”

The move gives Danone a foothold in one of the more rapidly developing areas of the nutrition market, while giving Huel access to the scale and infrastructure needed to support its next phase of expansion.

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