USA – Dean Foods confirmed on Monday that it is to buy organic processor Horizon Organic.

Dean, which already owns a 13% stake in the company, expects the deal to complete by the end of this year, although it is subject to Horizon shareholder and competition authority approval.

In the USA, Horizon markets organic dairy products, desserts, juices, fruit gels and eggs In the UK, it markets and sells organic milk, yogurt and butter under the Rachel’s Organic brand.

The deal comes as no surprise to the market in the USA: Dean has a habit of buying into areas it thinks show potential for growth. Previously it bought the White Wave soy milk brand to get a lever on that market, a move from which it is now reaping the rewards. It seems that even for a company as large as Dean, buying an existing product is easier than launching a new brand with the backing of a major player. The move also fits in well with Dean’s strategy to concentrate on high profit branded items.