Paris, Oct 23 - French food group Danone agreed to sell its Frucor fruit juice unit to Japan's Suntory for more than 600 million euros ($771 million) as it focuses on purity in its waters division and cuts debt.
Danone said in August that it was reviewing the future of Frucor, which sells fruit juices, fruit drinks, energy drinks, waters and soft drinks in New Zealand and Australia. Frucor has estimated annual sales of 210 million euros, Danone said.
"This transaction stems from the recent refocus on natural mineral water and spring water-based beverages and will allow Danone to focus on its core business growth opportunities," Danone said in a statement on Thursday.
"Related proceeds will be allocated to debt repayment," Danone added.
The group's debt rose to 11 billion euros after the purchase of Dutch baby food group Numico for 12.3 billion euros a year ago.
Danone had said earlier on Thursday that the sale of Frucor was progressing well after a source told Reuters it would complete the sale for close to 600 million euros this month.
Food and drink company Suntory operates the Bowmore single malt whisky distillery on Scotland's Isle of Islay and owns winemaker Chateau Lagrange, in the Bordeaux region of France.
The deal transaction is subject to approval by New Zealand authorities, Danone said.
Shares in Danone rose 3 percent to 42.63 euros on Thursday, outperforming a 0.4 percent rise on France's benchmark CAC-40 index.