Hain Celestial Announces Strategic Acquisition
The Hain Celestial Group (NASDAQ: HAIN), a leading natural and organic products company providing consumers with A Healthier Way of Life™, today announced the acquisition of Ella's Kitchen Group Limited and the formation of the Global Infant, Toddler & Kids Division under Hain Celestial US. Ella's Kitchen is a manufacturer and distributor of premium organic baby food under the Ella's Kitchen® brand and the first company to offer baby food in convenient flexible pouches. Ella's Kitchen offers a range of 80 branded organic baby food products principally in the United Kingdom, the United States and Scandinavia.
Ella's Kitchen generated approximately $70 million in sales in calendar year 2012 and is expected to be accretive to Hain Celestial's earnings in fiscal year 2014 by $0.05 to $0.08 per diluted share. Details of the transaction were not disclosed.
Paul Lindley, founder of Ella's Kitchen, will become Chief Executive Officer of the new Global Infant, Toddler & Kids Division at Hain Celestial US, with responsibility for Hain Celestial's Earth's Best® brand as well as the newly acquired Ella's Kitchen® brand. Paul will report to John Carroll, Executive Vice President and Chief Executive Officer, Hain Celestial US.
"We are very excited by the strategic acquisition of Ella's Kitchen, which complements our Earth's Best line of infant, toddler and kids products. Our Earth's Best team has much to be proud of, having grown the brand from less than $15 million in sales in 1999 to over $150 million today, as the first and only full line of organic baby food products with a wide variety of offerings including jars, pouches, formula, cereal, smoothies, snacks, soups, meals and frozen products, diapers and wipes," said Irwin D. Simon, Founder, President and Chief Executive Officer of Hain Celestial. "We plan to grow the Ella's Kitchen brand by leveraging our distribution platform in the European Union and the United States with the addition of Ella's Kitchen organic baby food product offerings. We also see the opportunity to expand in the UK market with new feeding and personal care products under the Ella's Kitchen brand. We welcome Paul Lindley, the founder of Ella's Kitchen and his team, who together with our accomplished Earth's Best team should accelerate the growth of both brands in our new Global Infant, Toddler and Kids Division. We strive to "Change the Way the World Eats" and bringing together Earth's Best and Ella's Kitchen brands should enable us to bring our natural and organic nutritional feeding offerings to a global consumer base."
"Today is truly exciting and ground breaking. I started Ella's Kitchen just seven years ago, alone in my daughter Ella's playroom. Now our Ella's Kitchen adventure continues as our total consumer focus, deep passion, clear vision and exceptionally talented team become part of a leading global natural and organic food and personal care business. The chance to take the next steps on our journey to improve children's health with a partner like Hain Celestial and the Earth's Best brand is something we relish and cherish. Together, we are committed to building the business that always put children's nutrition first. I am proud of what we have accomplished and look forward to what we can do, as we show that in business tiny ripples can become big waves of change," said Paul Lindley, Chief Executive Officer of Global Infant, Toddler & Kids Division of Hain Celestial.
The Hain Celestial Group, Inc.
The Hain Celestial Group (NASDAQ: HAIN), headquartered in Lake Success, 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®, Earth's Best®, Ella's Kitchen®, Terra®, Garden of Eatin'®, Sensible Portions®, Health Valley®, 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®, WestSoy®, The Greek Gods®, BluePrint®, Ethnic Gourmet®, Yves Veggie Cuisine®, Europe's Best®, Cully & Sully®, New Covent Garden Soup Co.®, Johnson's Juice Co.®, Farmhouse Fare®, Hartley's®, Sun-Pat®, Gale's®, Robertson's®, Frank Cooper's®, Linda McCartney®, Lima®, Danival®, GG UniqueFiber®, Natumi®, JASON®, Zia® Natural Skincare, Avalon Organics®, Alba Botanica®, Queen Helene® and Earth's Best TenderCare®. Hain Celestial has been providing "A Healthier Way of Life™" since 1993. For more information, visit www.hain.com.
Safe Harbor Statement
This press release contains forward-looking statements under the Private Securities Litigation Reform Act of 1995. Words such as "plan," "continue," "expect," "expected," "anticipate," "estimate," "believe," "may," "potential," "can," "positioned," "should," "future," "look forward" and similar expressions, or the negative of those expressions, may identify forward-looking statements. These forward-looking statements include the Company's expectations relating to (i) the acquisition of Ella's Kitchen and the potential improvements to the Company's earnings results therefrom; and (ii) the growth of the Global Infant, Toddler & Kids Division at Hain Celestial US. Forward-looking statements involve known and unknown risks and uncertainties, which could cause the Company's actual results to differ materially from those described in the forward-looking statements. These factors include, but are not limited to the Company's ability to achieve its guidance for net sales and earnings per diluted share in fiscal year 2013 given the economic environment in the U.S. and other markets that it sells products as well as economic, political and business conditions generally and their effect on the Company's customers and consumers' product preferences, and the Company's business, financial condition and results of operations; the Company's expectations for its business for fiscal year 2013 and its positioning for the future; changes in estimates or judgments related to the Company's impairment analysis of goodwill and other intangible assets, as well as with respect to the Company's valuation allowances of its deferred tax assets; the Company's ability to implement its business and acquisition strategy; the ability of the Company's joint venture investments, to successfully execute their business plans; the Company's ability to realize sustainable growth generally and from investments in core brands, offering new products and its focus on cost containment, productivity, cash flow and margin enhancement in particular; the Company's ability to effectively integrate its acquisitions; the effects on the Company's results of operations from the impacts of foreign exchange; competition; the success and cost of introducing new products as well as the Company's ability to increase prices on existing products; availability and retention of key personnel; the Company's reliance on third party distributors, manufacturers and suppliers; the Company's ability to maintain existing customers and secure and integrate new customers; the Company's ability to respond to changes and trends in customer and consumer demand, preferences and consumption; international sales and operations; changes in fuel, raw material and commodity costs; changes in, or the failure to comply with, government regulations; the availability of natural and organic ingredients; the loss of one or more of the Company's manufacturing facilities; the ability to use the Company's trademarks; reputational damage; product liability; seasonality; litigation; the Company's reliance on its information technology systems; and the 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, 2012. 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.
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