The Hain Celestial Group,
Inc. HAIN, a leading organic and natural products company with
operations in North America, Europe and India providing consumers with A
Healthier Way of Life™, today announced the acquisition of the remaining
approximately 80% that it did not already own of EK Holdings, Inc. and its
wholly-owned subsidiary, Empire Kosher Poultry, Inc. ("Empire") based in
Mifflintown, Pennsylvania. The purchase price for the remaining approximately
80% of Empire was $57.6 million, which includes net debt that was repaid at
closing. In May 2010 Empire purchased Kosher Valley®, the first brand of
certified kosher antibiotic-free, vegetarian fed and humanely raised all
natural branded chicken and turkey products, from Hain Pure Protein
Corporation ("HPPC") at which time HPPC received a 19% interest in Empire.
The Hain Celestial Group, Inc.
Empire offers a full range of kosher antibiotic- and hormone-free chicken and
turkey products including fresh tray pack, frozen, deli, fully cooked,
gluten-free and organic products in the United States as well as the Kosher
Valley brand sold exclusively in Whole Foods Market. Empire generated over
$100 million in net sales in calendar year 2014 and is expected to be
accretive to Hain Celestial's earnings in fiscal year 2016.
"We are excited with our strategic acquisition of Empire, the leading kosher,
antibiotic-free poultry brand in the United States and welcome Jeff Brown and
the Empire team to Hain Celestial. Empire expands our Farm to Table product
offerings, a growing category that appeals to those seeking 'the pure foods
trend,' including our core natural and organic consumers. We plan to expand
the product offerings into deli, fresh prepared foods and other grocery
categories. Additionally, we expect to leverage our infrastructure to create
revenue and procurement synergies, and we paid an attractive price considering
the multiples being paid for antibiotic-free protein companies today," said
Irwin D. Simon, Founder, President and Chief Executive Officer of Hain
Celestial.
Jeffrey N. Brown, Chief Executive Officer, will continue to be responsible for
the day-to-day operations of Empire, reporting to Irwin Simon. Empire
practices sustainable farming, promotes social justice and strictly observes
Jewish dietary laws to produce among the best tasting and highest quality
all-natural poultry products. Empire chicken and turkey products are not only
for those who keep kosher for religious reasons but for those who want to eat
healthfully and safely as well as responsibly by promoting worker and animal
rights, protecting the environment and supporting local farmers and their
communities.
"Empire products appeal to a broad market of consumers, not just those seeking
our brand and products to observe dietary customs. As the No. 1 kosher
producer of humanely raised hormone-free and antibiotic-free poultry, I'm
pleased to be able to continue the heritage of Empire under the stewardship of
Hain Celestial, where we feel we can leverage opportunities to expand our
distribution," said Jeffrey N. Brown, Chief Executive Officer of Empire.
"Empire is a strong brand in a growing category with a lot of experience,
which provides us with the opportunity to broaden our existing portfolio of
organic and natural brands into healthier kosher products. Empire should
leverage Hain Celestial's knowhow and infrastructure to pursue new categories
and kosher product offerings," concluded Irwin Simon.
Hain Celestial has over 2,000 products that are kosher certified in its
branded portfolio of natural and organic products. According to a December
2011 Mintel Group Ltd. Report, kosher foods have an aura of purity and
healthfulness, which should continue to fuel growth in the category. With the
acquisition of Tilda® basmati rice in January 2014, the Company has expanded
its ethnic footprint and product offerings including geographically into India
and the Middle East, where the Company believes it may have opportunities to
expand its organic and natural kosher product offerings.
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