US dairy giant Dean Foods has agreed to buy the 87% of Horizon Organic that it does not already own for $216m.

Horizon Organic, which produces, markets and sells organic milk, yogurt and butter under the Rachel’s Organic brand, said that the partnership would allow the company “to expand the distribution of Horizon Organic branded milk, dairy and juice products”.

Chairman of Dean Foods, Gregg Engles, said: “We are very excited to have the opportunity to join forces with Horizon Organic management team and continue to build upon their passion and commitment to organic foods.”