In a move to increase its exposure to the growing fresh food category, leading organic and natural food group, Hain Celestial Group Inc., has agreed to acquire UK-based Orchard House Foods Ltd. through its wholly owned subsidiary, Hain Celestial United Kingdom, from Wellness Foods Ltd for an undisclosed amount, according to a company release.

 

Founded in 1985 and located in Corby and Gateshead, Orchard House is a leading supplier of prepared fruit, juices, fruit desserts, and ingredients to retailers, on-the-go food outlets, manufacturers, and food service outlets across the UK.

 

"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.  Orchard House provides us with the opportunity to expand fruit product offerings into continental Europe, as well as new product development with cold pressed juice and branded fruit product offerings in the United Kingdom. Additionally, we expect sales and operating efficiencies in terms of fruit procurement across our businesses around the world," said Irwin D. Simon, Founder, President and Chief Executive Officer of Hain Celestial in a company statement.

 

For fiscal year 2016, Orchard House expects to see net sales of between $60 million and $65 million, and modest accretion to Hain Celestial’s earnings from the addition of the company. Until official approval for the deal has been received from the UK’s Competition Market Authority, Orchard House will operate independently, but once approval is granted, the company will then explore growth opportunities and deliver synergies to Hain Celestial through the consolidation of its financial results into Hain’s UK operating segment.

 

"This is a truly exciting acquisition, increasing our product offerings to meet consumers' desire for a healthier lifestyle and the "5 A DAY" Live Well Healthy Living for Everyone" initiative in the United Kingdom. Orchard House brings new capacity and opportunities for accelerated growth across a number of categories, including the development of our existing branded ranges and new brands presently being prepared for launch," said Jeremy Hudson, Chief Executive Officer of Hain Daniels Group in a company press release announcing the acquisition.