Hain Celestial has completed the divestiture of its UK fruit business to private equity firm Elaghmore, as it continues to simplify its portfolio.
The financial terms of the deal – which includes the Orchard House Foods business and associated brands – have not been disclosed, but it is believed that the price of the acquisition was around £25 million, according to a source familiar with the matter.
The transaction is the latest in a series of divestitures by Hain in recent years, including the sale of the Danival, Casbah and Europe’s Best brands in 2020.
The previous year, Hain’s simplification efforts saw it offload brands including Tilda rice, Arrowhead Mills and SunSpire.
“The divestment of this complex, non-core asset fully aligns with our brand simplification and strategic transformation processes,” said Mark L. Schiller, Hain Celestial president and CEO.
“By divesting this business, which was negatively impacted by the Covid-19 pandemic, the remaining Hain Celestial business will show immediate improvement in its growth rate and margins, allowing us to reinvest capital behind the strength of the remaining international platform.
“We remain confident in our ability to continue to improve our overall margin and cash flow profiles to fuel sustainable long-term growth and profitability.”
© FoodBev Media Ltd 2020
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