US food group Hain Celestial has continued with moves to simplify its portfolio by selling its French organic products business Danival to a subsidiary of European peer Wessanen.
Financial details were not disclosed.
Hain Celestial bought Danival, which makes products including soups, spreads and sauces, in 2011 but the company is now engaged in a strategy to streamline its range to boost margins. The group, which manufactures brands including Clarks, Gale’s, New Covent Garden Soup Co. and Sun-Pat, revealed its new strategy in February 2019 and since then has sold off a number of brands including its Tilda rice business, turkey producer Plainville Farms and, in May, its Rudi’s organic bakery brand.
Mark Schiller, Hain Celestial’s president and CEO, said: “This transaction helps to further our brand portfolio simplification journey as we continue to improve our margins and cash flow to fuel long term sustainable growth and profitability.”
Netherlands-based Wessanen, the owner of brands including Mrs Crimble cakes and Whole Earth peanut butter, was acquired by a consortium of private-equity firm PAI Partners and Wessanen’s largest investor, Charles Jobson, last April.
Christophe Barnouin, CEO of Wessanen, said: “We are very pleased to welcome Danival and its teams to Wessanen. Danival will be a perfect fit with our family of companies. The brand is a pioneer in the organic French market with strong commitments: 100% organic, locally sourced, free from flavours, food colourings and thickeners.”