Press release from PR Newswire
Hain Celestial Announces two Strategic Acquisitions: Danival SAS and GG UniqueFiber AS
Thursday, February 03, 2011
Expands Branded Organic Food Product Offerings and Adds High Fiber Food Product Line
MELVILLE, N.Y., Feb. 3, 2011 /PRNewswire/ -- The Hain Celestial Group, Inc. (Nasdaq: HAIN), a leading natural and organic products company providing consumers with A Healthy Way of Life?, today 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.
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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 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.
The Hain Celestial Group
The Hain Celestial Group (Nasdaq: HAIN), headquartered in Melville, NY, is a leading natural and organic products company in North America and Europe. Hain Celestial participates in many natural categories with well-known brands that include Celestial Seasonings®, Terra®, Garden of Eatin'®, Sensible Portions®, Health Valley®, WestSoy®, Earth's Best®, Arrowhead Mills®, MaraNatha®, SunSpire®, DeBoles®, Gluten Free Cafe?, Hain Pure Foods®, Hollywood®, Spectrum Naturals®, Spectrum Essentials®, Walnut Acres Organic®, Imagine®, Almond Dream®, Rice Dream®, Soy Dream®, Rosetto®, Ethnic Gourmet®, Yves Veggie Cuisine®, Granose®, Realeat®, Linda McCartney®, Daily Bread?, Lima®, GG UniqueFiber?, Grains Noirs®, Natumi®, JASON®, Zia® Natural Skincare, Avalon Organics®, Alba Botanica®, Queen Helene®, Tushies®, TenderCare® and Martha Stewart Clean?. Hain Celestial has been providing "A Healthy Way of Life?" since 1993. For more information, visit www.hain-celestial.com.
Safe Harbor Statement
This press release contains forward-looking statements under Rule 3b-6 of the Securities Exchange Act of 1934, as amended. Words such as "expect," "expected," "anticipate," "estimate," "believe," "may," "potential," "can," "position," "positioned," "should," "plan," "continue," "future," "look forward" and similar expressions, or the negative of those expressions, may identify forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties, which could cause our actual results to differ materially from those described in the forward-looking statements. These forward-looking statements include our expectations relating to the acquisition of the Danival and GG UniqueFiber brands and the potential improvements to the Company's earnings resulting there from. These risks include but are not limited to our ability to achieve our guidance for net sales and earnings per diluted share in fiscal year 2011 given the environment in the U.S. and other markets in which we sell products as well as economic and business conditions generally and their effect on our customers and consumers' product preferences, and our business, financial condition and results of operations; changes in estimates or judgments related to our impairment analysis of goodwill and other intangible assets; our ability to implement our business and acquisition strategy, including our strategy for improving results in Europe; Hain Pure Protein Corporation's ability to implement its business strategy; our ability to realize sustainable growth generally and from investments in core brands, offering new products and our focus on cost containment, productivity, cash flow and margin enhancement in particular; our ability to effectively integrate our acquisitions; our ability to successfully execute our joint ventures; competition; the success and cost of introducing new products as well as our ability to increase prices on existing products; the availability and retention of key personnel; our reliance on third party distributors, manufacturers and suppliers; our ability to maintain existing contracts and secure and integrate new customers; our ability to respond to changes and trends in customer and consumer demand, preferences and consumption; international sales and operations; increases in fuel and commodity costs; the effects on our results of operations from adverse impacts of foreign exchange; changes in, or the failure to comply with, government regulations; and other risks detailed from time-to-time in the Company's reports filed with the Securities and Exchange Commission, including the annual report on Form 10-K for the fiscal year ended June 30, 2010. As a result of the foregoing and other factors, no assurance can be given as to future results, levels of activity and achievements and neither the Company nor any person assumes responsibility for the accuracy and completeness of these statements.
SOURCE The Hain Celestial Group, Inc.
For further information: Ira Lamel or Mary Anthes, The Hain Celestial Group, Inc., +1-631-730-2200