Hain Celestial Announces Two Strategic Acquisitions
Hain Celestial expands branded organic food product offerings and adds high fiber food product line.
2/4/2011 --- The Hain Celestial Group, Inc., a leading natural and organic products company providing consumers with A Healthy Way of Life, announced two acquisitions in Europe. Danival SAS is a manufacturer of certified organic food products with facilities in France, and GG UniqueFiber AS is a manufacturer of all natural high fiber crackers in Norway. Both of these acquisitions are expected to be neutral to Hain Celestial's earnings in fiscal year 2011 and to be accretive to earnings in fiscal year 2012.
Danival
Danival's product line includes over 200 branded organic sweet and salted grocery, fruits, vegetables and delicatessen products distributed in France, Belgium, Germany, Spain, Italy and the United Kingdom. Danival's products are certified organic by Ecocert and bear the Agriculture Biologique AB organic farming label.
"The strategic acquisition of the Danival branded organic product line complements the organic food line of our Lima brand in Europe where organic products have experienced double digit growth in recent years," said Irwin D. Simon, President and Chief Executive Officer of Hain Celestial. "We're excited about the opportunity to grow our global brands, including Lima, Celestial Seasonings teas and Terra chips in France by leveraging the manufacturing, marketing and sales infrastructure of Danival. We expect to expand Danival's product lines into other channels of distribution in the European Union, the United States and Asia."
"Joining together with Lima and Hain Celestial should allow us to strengthen Danival in our historical market, organic food shops in France, while allowing us to develop sales of our products in other organic markets in Europe and abroad. It's very positive for Danival," said Thomas Breuzet, Chief Executive Officer of Danival.
The management team of Danival, including Thomas Breuzet, will join Hain Celestial, reporting to Philippe Woitrin, Chief Executive Officer of Hain Celestial Europe.
Danival, currently a subsidiary of the Viva Sante Group, a European healthcare company specializing in over-the-counter first-aid and wound care products. During calendar year 2010, Danival generated approximately $20 million in sales. Terms of the acquisition, which is expected to close on February 4, 2011, were not disclosed.
"The connection with The Hain Celestial Group should allow Danival to benefit from synergies extremely favorable with a company specialized in its sector and thus to continue on the path of development that has been opened by VivaSante," explained Herve Le Lous, President of VivaSante.
GG UniqueFiber
GG UniqueFiber produces branded natural grain products including GG Scandinavian Bran Crispbread, Oat Bran Crispbread and GG UniqueFiber FiberSprinkle, which are distributed in the United States, the European Union and Norway. The products are manufactured using Norwegian wheat, which is known for its unique, hearty high fiber bran content.
"We're excited to acquire GG crackers, a truly unique bran product that's an excellent source of dietary fiber. A strategic addition to our existing whole grain and high fiber products, GG UniqueFiber broadens Hain Celestial's offerings in this expanding category, as dietary fiber may help manage weight and maintain healthy cholesterol to support cardiovascular function for overall good health," said Irwin Simon.
"We look forward to expanding the reach of our product distribution by partnering with Hain Celestial. Aligning our company and its products with Hain Celestial should allow us to achieve growth and success we could not have achieved as a standalone business," said Atle Johannessen, General Manager of GG UniqueFiber.
The management of GG UniqueFiber, Atle Johannessen and Janne Mette Bjornum, will join Hain Celestial, reporting to Philippe Woitrin. GG UniqueFiber had sales of approximately $2 million for the year ended December 31, 2010. Terms of the acquisition, which closed on January 28, 2011, were not disclosed.
