US: Hain Celestial buys remainder of poultry JV
Hain Celestial has acquired the remainder share of Hain Pure Protein
Hain Celestial has taken control of its Hain Pure Protein venture from partner Pegasus Capital Advisors in a US$40m deal.
The US group has bought the remaining 51.3% in the business it did not own.
Hain Pure Protein produces organic and antibiotic-free poultry for the US market.
"We are very excited about the strategic acquisition of HPP. Our joint venture has successfully grown from incubation to over US$200m in net sales by focusing on antibiotic-free and organic poultry," Hain president and CEO Irwin Simon said.
Jay Lieberman, COO of HPP, will continue to be responsible for its day-to-day operations.
"We expect to deliver synergies through increased sales growth and cost efficiencies by effectively leveraging Hain Celestial's broader scale, as we have successfully demonstrated with our previous acquisitions," Simon added.
"This is a great category for us. We view HPP's product offerings as a complement to our existing product portfolio and a platform from which we can expand our snacks and other Hain Celestial's product offerings into food service, and we will continue to pursue other accretive strategic acquisitions for Hain Celestial in growing categories in the natural and organic sector."
LAKE SUCCESS, N.Y., July 17, 2014 /PRNewswire/ -- The Hain Celestial Group, Inc. (NASDAQ: HAIN), a leading organic and natural products company providing consumers with A Healthier Way of LifeTM, today announced the acquisition of the remaining 51.3% of Hain Pure Protein Corporation ("HPP") that it did not already own from an affiliate of Pegasus Capital Advisors, L.P. ("Pegasus"). The purchase price of HPP was $40 million.
The Hain Celestial Group, Inc.
HPP, a leading antibiotic-free and organic poultry company, offers a full range of fresh and frozen FreeBird® chicken and Plainville Farms® turkey and private label products in the United States. In fiscal year 2014, HPP is expected to generate over $230 million in net sales, a double digit increase over the prior year, and is expected to be accretive to Hain Celestial's earnings in fiscal year 2015 by $0.03 to $0.05 per diluted share. Hain Celestial plans to continue to improve HPP's results by leveraging its sales network, marketing and administrative functions and improving productivity.
"We are very excited about the strategic acquisition of HPP. Our joint venture has successfully grown from incubation to over $200 million in net sales by focusing on antibiotic-free and organic poultry," said Irwin D. Simon, Founder, President and Chief Executive Officer of Hain Celestial. "While we have enjoyed partnering with Pegasus for many years, having Freebird chicken and Plainville Farms turkey as part of Hain Celestial's branded product portfolio provides us with a wide array of Farm to Table product offerings from fresh to deli and food service in a growing category that appeals to those seeking "the pure foods trend", including our core natural and organic consumers."
All FreeBird and Plainville Farms products carry the Earthwise® banner on packaging, which signifies humanely-raised and vegetarian-fed poultry from family farms, without the use of growth hormones or antibiotics. HPP's customers include grocery and natural foods retailers as well as food service outlets including fast casual and white tablecloth venues, which feature food that is grown sustainably and without genetically modified organisms ("GMOs").
Jay Lieberman, Chief Operating Officer of HPP, will continue to be responsible for the day-to-day operations of HPP, which will be a separate operating segment of the Company reporting to Irwin Simon. With HPP's expertise in food service, Ted Maguire, Senior Vice President, Sales of HPP will now be responsible for expanding Hain Celestial's products into the food service channel currently served by HPP.
"We expect to deliver synergies through increased sales growth and cost efficiencies by effectively leveraging Hain Celestial's broader scale, as we have successfully demonstrated with our previous acquisitions," added Irwin Simon. "This is a great category for us. We view HPP's product offerings as a complement to our existing product portfolio and a platform from which we can expand our snacks and other Hain Celestial's product offerings into food service, and we will continue to pursue other accretive strategic acquisitions for Hain Celestial in growing categories in the natural and organic sector."
Original source: Hain Celestial
Companies: Hain Celestial
The Hain Celestial Group, Inc. (HAIN) - Financial and Strategic SWOT Analysis Review provides you an in-depth strategic SWOT analysis of the company’s businesses and operations. The profile has been c...
Baby Food in Canada industry profile provides top-line qualitative and quantitative summary information including: market share, market size (value and volume 2009-13, and forecast to 2018). The profi...
The analysts in this report forecast the Global Non-GMO Food market will grow at a CAGR of 15.92 percent over the period 2013-2018. The report covers the present scenario and the growth prospects of t...
About the Soy Food Market
Soy food products, such as tofu and soy milk, have been consumed as traditional foods in Asia. With a rise in awareness of the health benefits of soy food, it has gained...
Synopsis The report provides a review of the latest news and key events in the global savory snacks market during March 2014. Summary Using this report, marketers will effectively gain an insight int...
Gluten is a protein composite primarily found in wheat, barley, rye, and triticale. Gluten-free food is either free of ingredients that contain gluten or does not contain grains that are gluten rich. ...
Synopsis The report provides a review of the mergers and acquisitions (M&As), partnering deals, and agreements entered into by companies active in the global meat market during July 2014. Summary Usi...
- What US companies might Nomad Foods buy?
- Competition intensifies among UK burger chains
- Soda draws fire from food in Mexico obesity battle
- Challenges for General Mills with The Good Table
- Why investors are concerned about water risk
- Mondelez CEO Rosenfeld defends moves on costs
- Just Mayo under fire from US FDA after complaint
- B&G Foods "front-runner for Green Giant"
- FrieslandCampina H1 earnings up despite flat sales
- Hearthside to buy nutrition bar maker VSI
- Management briefing: just-food’s industry outlook for 2015
- Food Flavourings & Colourings (UK) - Industry Report
- Nestle USA, Inc.: Consumer Packaged Goods - Company Profile & SWOT Analysis
- The Coca-Cola Company : Consumer Packaged Goods - Company Profile, SWOT & Financial Analysis
- Bakery Market in Japan: Forecast, and Market Analysis 2015-2019