Hain Celestial Group Inc. (Nasdaq: HAIN), which makes natural and organic food and personal care products, is expanding its alliance with Singapore-based natural food and beverage company Yeo Hiap Seng Ltd. The companies plan to exchange $6 million in equity investments, giving Yeo 196,464 shares of Hain, and Hain receiving 4 million shares of Yeo.
Yeo also granted Hain an option to buy up to 5 percent of the company’s outstanding shares, while Hain gave Yeo the option to purchase a number of shares equal to Hain’s investment. Each company has the right of first refusal on the sale of its shares.
“After extensive research and development, Hain Celestial expects to launch several co-branded products with Yeo’s later this year as part of our global strategic expansion,” Hain President and Chief Executive Irwin D. Simon said in a statement.
Hain and Yeo also plan to establish two joint ventures to invest in natural and organic food and personal care product companies in Asia and pursue interests in marketing and distribution of food and beverages, and product development.
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