UK: Hain Celestial, Adelie in asset swap deal
Hain Daniels said the prepared fruit products business is a “natural fit and a great opportunity” for the company
Hain Celestial is to sell its UK sandwich business Daily Bread to Adelie Food Group in return for the local firm's prepared fruits business.
The US group said the deal with Adelie, which supplies products including salads, quiches and sandwiches to UK multiples including Asda, is in line with its strategy to grow its core categories in the UK.
Rob Burnett, CEO of Hain's UK arm Hain Daniels said: "We are intent on providing innovative branded fruit and vegetable solutions for a wide variety of occasions and uses and the purchase of the prepared fruit products business clearly strengthens this proposition."
Hain intends to develop the Luton production site, previously home to its sandwich business, into an innovation centre, where production of the newly-acquired prepared fruits business will take place.
The news follows last week's completion of Hain's acquisition of Premier Foods plc's spreads assets. Hain also announced the takeover of US natural and organic raw juice and bar company BluePrint yesterday (5 November).
Earlier this year, UK convenience food producer Adelie was sold to Indian leisure company India Hospitality Corp (IHC).
HAIN DANIELS ACQUIRES PREPAPARED FRUIT PRODUCTS BUSINESS
Hain Daniels Group has reached an agreement to purchase the prepared fruit products business of the Adelie Foods Group.
The move, in line with Hain Daniels' strategy to grow its core categories in the UK, also sees Adelie Foods Group purchasing the Daily Bread sandwich business from Hain Daniels.
Hain Daniels has announced its intention to develop its Luton production site, previously home to its sandwich business, into a High Care Innovation Centre. Production of the newly-acquired prepared fruits business will take place there.
Rob Burnett, Hain Daniels' CEO, said the prepared fruit products business was a ‘natural fit and a great opportunity' for the company.
"The acquisition re-inforces our commitment to sustained growth. We are intent on providing innovative branded fruit and vegetable solutions for a wide variety of occasions and uses and the purchase of the prepared fruit products business clearly strengthens this proposition," he said.
The agreement involves the companies working closely together in a joint distribution agreement in which Adelie will deliver products on behalf of Hain Daniels, in addition to sandwiches.
"Customers will benefit from more choice from a complementary range of products," adds Burnett. "It also means that both companies benefit from efficiency distributions via this collaborative approach."
HAIN DANIELS ACQUISITON - 2
Hain Daniels expects production of the new prepared fruit products to commence at Luton in December, with all the newly acquired products being produced there by the end of January 2013.
The news follows the completion of the purchase of the Premier Foods' portfolio of packaged grocery brands, including Hartley's, Gale's and Robertson's, and the Histon manufacturing site, by the Hain Celestial Group, Hain Daniels Group's US-based parent company.
Original source: Hain Daniels
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