Hain Celestial acquires remaining stake in Hain Pure Protein
Natural and organic food products producer Hain Celestial has acquired the remaining 51.3% stake in Pegasus Capital Advisors' Hain Pure Protein (HPP) that it did not already own.
The deal, which also includes the acquisition of 19% interest in Empire Kosher Poultry, was valued at $40m.
HPP, a joint venture between Pegasus and Hain Celestial, grows natural, antibiotic-free poultry produced under brands including FreeBird, Plainville Farms and Epicurean Farms.
Hain Celestial expects the transaction to be accretive to its earnings in fiscal 2015 by $0.03 to $0.05 per diluted share.
In addition, the company plans to leverage HPP's sales network, marketing and administrative functions and improve productivity for enhanced results.
Hain Celestial founder, president and CEO Irwin D. Simon said: "We are very excited about the strategic acquisition of HPP.
"Our joint venture has successfully grown from incubation to over $200m in net sales by focusing on antibiotic-free and organic poultry.
"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."
HPP COO Jay Lieberman will continue to handle the company's day-to-day operations, reporting to Simon, while the expansion of Hain Celestial's products into the food service channel currently served by HPP will be managed by HPP sales senior vice president Ted Maguire.