French conglomerate Groupe Danone has sold US subsidiary DS Waters to investment fund Kelso for an undisclosed sum.

Groupe Danone set up DS Waters, which had revenues of almost US$800m, two years ago but has decided to pull out of the "home and office delivery" segment in the US.

"This decision does not affect [our] development strategy for HOD water business in other parts of the world, notably in emerging countries including China, Indonesia and Mexico, where [we are] market leader," the company said.

Groupe Danone added that the sale would lead to it booking a one-off charge of EUR100m (US$117m) for the second half of the year.