Paris, France— Danone has entered a binding agreement to sell its U.S. dairy business Stonyfield to Lactalis for $875 million.

The company was required to sell New Hampshire-based Stonyfield as part of the U.S. Justice Department’s approval of its $10 billion purchase of foods giant WhiteWave. Stonyfield generated about $370 million in sales in 2016, Danone reported.

According toThe Wall StreetJournal, other bidders for Stonyfield included Dean Foods, Mexico’s Grupo Lala and Inner Mongolia Yili Industrial Group, which is the largest dairy company in China.

Yogurt remains a fast-growing food category. Lactalis also owns the brands President and Rondele and this acquisition gives them more visibility in organic dairy.

The deal is expected to close in the third quarter.

Published on Whole Foods Online 7/5/17