Hain Celestial Inc to buy Premier Foods Plc for £200 million
24 Aug 2012
US food maker Hain Celestial Group Inc is buying the jam and spreads business of Britain's Premier Foods Plc for £200 million in a bid to expand its footprint in the market.
According to analysts, with the deal Hain Celestia, home to Celestial Seasonings tea, Earth's Best baby food and Terra Chips, greater scale in Britain, where it hopes to replicate the success it had met with in the US.
Also reporting better-than-expected fourth-quarter earnings on Wednesday, the company gave an upbeat forecast for the new fiscal year, proving that its portfolio of natural and organic products was performing better than other packaged food peers.
Hain shares shot 19 per cent yesterday to their highest level ever, emerging the second-biggest gainer on the Nadaq stock market, logging their biggest percentage jump since 2003.
Shares of Premier Foods, owner of British brands including Hovis bread, Batchelors quick meals, Mr Kipling cakes and Loyd Grossman cooking sauces, were up 1.5 per cent in London.
Premier has been selling businesses as it focuses on eight key brands to try to turn around its business with the latest deal, which includes Hartley's jams and Sun-Pat peanut butter, following the sales of flour brand Elephant Atta and Sarson's vinegar earlier this year.