US: Hain to acquire World Gourmet Marketing
Hain said it expects the acquisition to be accretive to the company
US-based natural and organic food maker Hain Celestial is to acquire snack maker World Gourmet Marketing.
The agreement in principle was announced yesterday (6 May) and Hain said it expects the acquisition to be accretive to the company once it closes.
World Gourmet produces the Sensible Portions brand of Veggie Straws, Pita Bites and other snack products across various sales channels. Hain said the business had "developed significant strength in the club store channel".
The transaction remains subject to regulatory and other approvals.
"We are excited about adding Sensible Portions to our portfolio of brands and the opportunity to leverage their distribution and in-house capabilities," said Hain president and CEO Irwin Simon. "We look forward to having Jerry Bello and Jason Cohen, co-founders of Sensible Portions, join us and continue to lead the growth and innovation of their products in Hain Celestial's portfolio.”
Hain yesterday reported a swing to profit in its fiscal third quarter but cut its full-year earnings forecast.
Net income for the three months to the end of March totalled US$2.7m, compared to a net loss of $41.2m in the same quarter last year.
Nevertheless, for fiscal 2010, Hain cut its EPS guidance to between $0.78 and $0.81 per share compared to a forecast of $1.05 to $1.10 given in February.
Sales are expected to reach $915m to $925m, a drop from the previously forecast $920m to $940m.
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