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Hain Celestial Expands in U.K. with Orchard House Buyout

The Hain Celestial Group Inc.HAIN is constantly on the lookout for strategic opportunities to expand its footprint in the organic and natural products category in order to offer "A Healthier Way of Life." In its latest step toward this direction, the company acquired Orchard House Foods Limited ("Orchard House"), one of the leading providers of prepared fruit, juices, fruit desserts and other ingredients, with facilities in Gateshead and Corby in the U.K.

Hain Celestial believes that the buyout will help enhance fruit product offerings in continental Europe and also expedite the development of new products with cold pressed juice as well as branded fruit product offerings in the U.K. Management believes that Orchard House's expertise and technology can be well utilized in new branded product offerings, in fruit, juice and bars under the Hartley's, Ella's Kitchen, Sun-Ripe brands, and Johnson's Juice Co.

Hain Celestial anticipates generating approximately $60-$65 million in net sales and modest accretion to its earnings in fiscal 2016 from the acquisition of Orchard House.

Acquisitions have played a vital part in Hain Celestial's strategy of building market share. These have not only widened the company's geographical presence, but also provided opportunities to cross-sell products in the U.S., Canadian and European markets.

The company acquired Tilda Limited, a renowned name in Basmati rice, and Rudi's Organic Bakery, one of the leading organic and gluten-free companies. It also purchased leading packaged grocery brands - Hartley's, Gale's Robertson's, Frank Cooper's and Sun-Pat - from Premier Foods plc. Additionally, it acquired Ella's Kitchen Group Limited that offers organic baby food products. Hain Celestial's other acquisitions include those of leading plant-based food and beverage company, Mona Group, and Belvedere International, Inc. - provider of health and beauty care products, including the Live Clean brand with about 200 baby, body and hair care products.

Zacks Rank

Hain Celestial currently carries a Zacks Rank #3 (Hold). Better-ranked stocks include Campbell Soup Company CPB , sporting a Zacks Rank #1 (Strong Buy), Boulder Brands, Inc. BDBD and ConAgra Foods, Inc. CAG , both carrying a Zacks Rank #2 (Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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