July 21, 2014

Hain Celestial acquires poultry subsidiary for US$40 million

Hain Celestial Group Inc., a Lake Success-based organic and natural products company, has acquired the remaining 51.3% interest in its New Oxford, Pennsylvania-based organic and antibiotic-free poultry producer.

With the US$40-million acquisition from an affiliate of Pegasus Capital Advisors, L.P., Hain Pure Protein is now a wholly-owned subsidiary of Hain Celestial.

Hain Pure Protein, which produces fresh and frozen FreeBird chicken and Plainville Farms turkey, is expected to generate over US$230 million in net sales in 2014, a double-digit increase over the prior year, according to Hain Celestial officials. The poultry is sold to grocery stores and food service customers, including fast-casual and fine restaurants.

Formed in 2005, Hain Pure Protein was a joint venture between Hain Celestial and Pegasus, a private equity fund manager based in Cos Cob, Connecticut. Hain Pure Protein owns a 19% interest in Empire Kosher Poultry, based in Mifflintown, Pennsylvania.

"We view HPP's product offerings as a complement to our existing product portfolio and a platform from which we can expand our snacks and other Hain Celestial's product offerings into food service," said Irwin Simon, founder and CEO of Hain Celestial.