The merger of Hain Food Group (Uniondale, Long Island) and Celestial Seasonings (Boulder, CO.)creates the largest natural foods company in the U.S., with projected revenues of $1 billion by 2002.
Although a shareholder vote is required, the board of directors from both companies approved a deal for Hain to acquire Celestial Seasonings for about $390 million in stock. Mo Siegel, Celestial’s chairman and founder will become vice chairman of the new company, The Hain Celestial Group Inc., (Nasdaq:HAIN) and Irwin Simon, Hain CEO, will become chairman, president, and CEO. The company will hold the lead position for the industry’s top three food categories: non-dairy products, snack foods and teas. Celestial tea is on the shelves in 80 percent of U.S. supermarkets; the merger will help Hain to expand into mainstream markets past its current 30 percent.
Consolidation is becoming commonplace in this industry sector, but usually conventional food companies buy natural products companies, rather than two natural products companies merging together. Most recently, Kraft acquired Balance Bar (energy bars) and Boca Burger (frozen vegetarian burgers).
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