The Hain Celestial Group Inc (NASDAQ:HAIN) announced that Hain Pure Protein Corporation (HPP), a joint venture between Pegasus Capital Advisors LP and Hain Celestial, has sold its Kosher Valley brand of certified kosher antibiotic-free chicken and turkey to Empire Kosher Poultry Inc.
Under terms of the transaction, HPP received an equity interest in Empire as consideration for its Kosher Valley ownership.
“We are pleased that Kosher Valley has been acquired by Empire, a premier brand in kosher poultry, which will expand the breadth of its product lines and distribution reach,” said Irwin D Simon, president and chief executive officer of Hain Celestial and a director of HPP. “It’s great for HPP to join forces with Empire, as Kosher Valley will benefit from Empire’s production capabilities and reputation for delivering high-quality products to a broad market. At the same time, the antibiotic-free chicken and turkey product lines of HPP are experiencing good growth, as consumers choose poultry over red meat.”
Simon and Rodney Cohen of Pegasus are expected to become directors of Empire.
During the nine months ended March 31, 2010, Kosher Valley incurred losses, which had the effect of reducing Hain Celestial’s diluted earnings by $0.04 per share. Therefore Hain Celestial expects the sale to be accretive by approximately $0.05 to Hain Celestial’s future annual earnings.
Headquartered in Melville NY, Hain Celestial is a natural and organic products company providing consumers with “A Healthy Way of Life” in North America and Europe.
For more information, visit www.hain-celestial.com.
