US organics firm Hain Celestial has bought UK prepared fruit and juice company Orchard House Foods.
The deal, which was completed through the company’s UK subsidiary Hain Celestial UK, will expand the firm’s fruit product portfolio into Europe and allow NPD launches in the juice and fruit sectors in the UK.
It is expected to bring between £40-£50 million of net sales to Hain Celestiel during the 2016 financial year.
Managing director of Orchard House Foods, James Skidmore, will remain with the company and will now report to Jeremy Hudson, chief executive of Hain Daniels Group.
Orchard House Foods has sites in Corby and Gateshead in the UK. Hain Celestial Group already has operations in North America, Europe and India.
'We are excited about the acquisition of Orchard House, which expands our presence in the on-trend fresh category with prepared fruit, drinks and desserts,” said president and chief exeutive of Hain Celestial, Irwin Simon. “Additionally, we expect sales and operating efficiencies in terms of fruit procurement across our businesses around the world,” he added.
'Along with the acquisition comes innovative new processing technology to expand the shelf life of fresh fruit and juices. We also believe there may be opportunities to leverage Orchard House's expertise into new branded product offerings in fruit, juice and bars under the Ella's Kitchen, Hartley's, Johnson's Juice Co. and Sun-Ripe brands.'
Jeremy Hudson, chief executive of Hain Daniels Group, said the acquisition brings opportunities for “accelerated growth across a number of categories”, including the development of existing branded ranges and new brands poised for launch.
'We look forward to working with James and the rest of the leadership team to expand our business in the United Kingdom and into continental Europe,' Simon said.
Until formal clearance, Hain Daniels and Orchard House will continue to operate independently.
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