US: Hain Celestial buys organic and gluten-free baker Rudi's
Hain Celestial continues M&A spree
Hain Celestial has agreed to acquire US organic and gluten-free bakery group Rudi's Organic Bakery from Charterhouse Equity Partners for US$61.3m.
Rudi's generated approximately $60m in net sales in 2013 and the deal is expected to be accretive to Hain Celestial's earnings in fiscal year 2015, the company said in a statement.
President and CEO Irwin Simon said the acquisition increases Hain Celestial's exposure to on-trend categories - such as organic and gluten-free - and deepens its representation in the natural foods sector.
"We are very excited by the strategic acquisition of Rudi's, a leading certified organic bread brand, which expands our participation into 11 of the top 20 natural categories in the United States. At Hain Celestial we look for the latest trends, and consumers are increasing their purchases of whole grains, organic and gluten-free product offerings," he said.
Rudi's has about 60 products, including organic breads, bagels, wraps and soft pretzels. Hain said that the company would now look to expand the Rudi's brand into adjacent sectors.
Hain Celestial has been on something of an acquisition spree in recent years, taking on a variety of businesses including, UK rice supplier Tilda, children's food business Ella's Kitchen in the UK and New Covent Garden Soup Co. owner Daniels Group.
The Hain Celestial Group, Inc. (NASDAQ: HAIN), a leading organic and natural products company providing consumers with A Healthier Way of Life™, today announced the acquisition of Rudi's Organic Bakery, Inc. ("Rudi's"), a leading organic and gluten-free company with facilities in Boulder, Colorado. Under the Rudi's Organic Bakery® and Rudi's Gluten-Free Bakery brands, Rudi's offers a range of approximately 60 products including USDA-certified organic breads, buns, bagels, tortillas, wraps and soft pretzels and GFCO-certified natural breads, buns, pizza crusts, tortillas, snack bars and stuffing in the United States and Canada.
In calendar year 2013, Rudi's generated approximately $60 million in net sales and is expected to be accretive to Hain Celestial's earnings in fiscal year 2015. The purchase price of $61.3 million consisted of cash and common shares of Hain Celestial. Rudi's was a portfolio company of Charterhouse Equity Partners LLC.
"We are very excited by the strategic acquisition of Rudi's, a leading certified organic bread brand, which expands our participation into 11 of the top 20 natural categories in the United States. At Hain Celestial we look for the latest trends, and consumers are increasing their purchases of whole grains, organic and gluten-free product offerings," said Irwin D. Simon, Founder, President and Chief Executive Officer of Hain Celestial. "As a company committed to driving product innovation, we plan to build upon Rudi's leadership position and see the opportunity to take Rudi's into other categories where the brand does not have products today. We have a proven ability to expand great brands and products into various channels of distribution including the conventional, mass and club channels where we see significant opportunities for increased distribution. We expect to deliver significant synergies through top line sales and bottom line cost efficiencies by effectively leveraging the platform of Hain Celestial US, as we have successfully demonstrated with previous acquisitions."
"I am thrilled for all of the employees of Rudi's that we are joining the Hain Celestial family! They are a leader in organic and natural products, and this will be the perfect home for our brand, an industry icon since 1976," saidJane S. Miller, President and CEO of Rudi's.
"As a company deeply rooted in Boulder since the 1960s, we are pleased to be increasing our presence in the community, and we welcome the Rudi's team to the Hain Celestial family as we seek to drive the next level of growth for the brand," concluded Irwin Simon.
Third Quarter Fiscal Year 2014 Earnings Report
Hain Celestial will host its third quarter fiscal year 2014 earnings conference call on Thursday, May 8, 2014 at8:30 AM Eastern Daylight Time, which will include remarks on the strategic acquisition of Rudi's. The conference call will be webcast and available under the Investor Relations section of the Company's website atwww.hain.com.
Original source: Hain Celestial
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