Hain Celestial Group acquires British chilled-food maker Daniels Group in US$230M all-cash deal

Nevin Barich

MELVILLE, New York , October 25, 2011 (Associated Press) – The Hain Celestial Group Inc. has acquired British chilled-food maker Daniels Group in a $230 million all-cash deal, the natural and organic food and beverage company announced Tuesday.

Daniels makes such natural chilled foods as Covent Garden Soup and Johnson's Juice.

Hain Celestial said in a statement Tuesday that chilled and fresh food accounts for more than 50 percent of food sales in the United Kingdom and is the fastest-growing grocery category.

Hain Celestial, based in Melville, N.Y., said the acquisition will create a powerhouse in the fresh and frozen natural sector in the United Kingdom. The deal also will enhance Hain Celestial's international business and help it introduce its existing global brands, such as Rice Dream and Celestial Seasonings, to a wider market.

Daniels Group generated revenue of approximately $280 million in its last fiscal year. The company's Chief Executive, Rob Burnett, will become CEO of Hain Celestial United Kingdom.

Hain Celestial updated its 2012 outlook, given the latest deal and the recent acquisition of Europe's Best in Canada. It now expects adjusted earnings of $1.63 to $1.73 per share and revenue of $1.46 to $1.48 billion -- including Daniels and excluding acquisition costs.

Analysts polled by FactSet on average expect Hain Celestial to report adjusted earnings of $1.56 per share on revenue of $1.25 billion.

Hain Celestial is to report its first-quarter results Nov. 1.

Its shares rose 54 cents to $32.48 by early afternoon.

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