The Hain Celestial Group, Inc., a leading natural and organic products company providing consumers with A Healthy Way of Life™, announced the acquisition of the assets and business of 3 Greek Gods LLC, including its Greek Gods® brand of all natural, Greek-style yogurt, which is sold in natural and grocery retailers. The transaction is expected to be immediately accretive to Hain Celestial's earnings.
Greek-style and specialty yogurt grocery sales grew over 100% in the last year while over the last three years the overall yogurt category has experienced only a mid-single digit compound annual growth rate. Greek Gods authentic Greek-style yogurt is thicker and creamier than conventional-style yogurt and generally higher in protein and lower in carbohydrates and sodium. Greek Gods yogurt is a leading brand in the natural channel having experienced double-digit growth over the last year.
"The strategic acquisition of the Greek Gods brand, a leader in Greek-style yogurt, expands our product offerings into the yogurt category. We believe it will provide us with the opportunity to leverage our existing brands with product extensions in the category," said Irwin D. Simon, President and Chief Executive Officer of Hain Celestial. "We're excited to welcome Greek Gods founders, Stephanos Margaritis, Steve Tselios and Basel Nassar and add their products, developed with all the health attributes of live and active cultures, including probiotics, to our portfolio, and we look forward to expanding Greek Gods offerings in the United States and Canada."
"I know I speak for Stephanos and Steve, when I say that we are excited to be joining Hain Celestial with its strong portfolio of natural and organic brands," said Basel Nassar. "We believe that the quality of our products coupled with Hain Celestial's industry knowledge will open new doors and solidify our place in the yogurt category. The Greek Gods brand represents yogurt for a healthy life, and together with Hain Celestial we can combine our passion with their market expertise, while continuing to educate consumers as to the benefits of our Greek lifestyle. Steadily increasing yogurt sales indicate that in time, the United States consumption is expected to reach European consumption levels as recently Greek yogurt consumption has outperformed conventional yogurt consumption due to its pleasant taste and healthful characteristics," concluded Basel Nassar.
Greek Gods founders will join Hain Celestial as General Managers continuing as an integral part of Hain Celestial's Greek Gods Division reporting to John Carroll, Chief Executive Officer of Hain Celestial United States.
Greek Gods yogurt generated sales of over $10 million in calendar year 2009. Terms of the acquisition, which closed on Friday, were not disclosed.
The Hain Celestial Group
The Hain Celestial Group (Nasdaq: HAIN), headquartered in Melville, NY, is a leading natural and organic products company in North America and Europe. Hain Celestial participates in many natural categories with well-known brands that include Celestial Seasonings(R), Terra(R), Garden of Eatin'(R), Sensible Portions(R), Health Valley(R), WestSoy(R), Earth's Best(R), Arrowhead Mills(R), MaraNatha(R), SunSpire(R), DeBoles(R), Gluten Free Cafe(TM), Hain Pure Foods(R), Hollywood(R), Spectrum Naturals(R), Spectrum Essentials(R), Walnut Acres Organic(R), Imagine(R), Almond Dream(R), Rice Dream(R), Soy Dream(R), Rosetto(R), Ethnic Gourmet(R), Yves Veggie Cuisine(R), Granose(R), Realeat(R), Linda McCartney(R), Daily Bread(TM), Lima(R), Grains Noirs(R), Natumi(R), JASON(R), Zia(R) Natural Skincare, Avalon Organics(R), Alba Botanica(R), Queen Helene(R), Tushies(R), TenderCare(R) and Martha Stewart Clean(TM). Hain Celestial has been providing "A Healthy Way of Life(TM)" since 1993. For more information, visit www.hain-celestial.com.
Greek Gods Yogurt
Greek Gods yogurt, authentic Greek-style yogurt, is gluten-free and hormone-free with five live and active cultures including probiotics. Experience the myth with Greek Gods full-flavored products available in 6-ounce individual packages and 24-ounce family packs including Plain and Non-Fat Plain, Fig, Honey, Pomegranate, Honey Strawberry and Reduced Fat Vanilla, Cinnamon and Orange. For more information, visit www.greekgodsyogurt.com.
Safe Harbor Statement
This press release contains forward-looking statements under Rule 3b-6 of the Securities Exchange Act of 1934, as amended. Words such as "expect," "expected", "anticipate," "estimate," "believe," "may," "potential," "can," "position", "positioned," "should," "plan," "continue", "future", "look forward" and similar expressions, or the negative of those expressions, may identify forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties, which could cause our actual results to differ materially from those described in the forward-looking statements. These forward-looking statements include our expectations relating to the acquisition of the Greek Gods business and the potential improvements to the Company's earnings resulting therefrom. These risks include but are not limited to our ability to achieve our guidance for net sales and earnings per share in fiscal year 2010 given the recessionary environment in the U.S. and other markets that we sell products as well as economic and business conditions generally and their effect on our customers and consumers' product preferences, and our business, financial condition and results of operations; changes in estimates or judgments related to our impairment analysis of goodwill and other intangible assets as well as with respect to our valuation allowances of our deferred tax assets; our ability to implement our business and acquisition strategy, including our strategy for improving results in Europe; Hain Pure Protein's ability to implement its business strategy; our ability to realize sustainable growth generally and from investments in core brands, offering new products and our focus on cost containment, productivity, cash flow and margin enhancement in particular; our ability to effectively integrate our acquisitions; our ability to successfully execute our joint ventures; competition; the success and cost of introducing new products as well as our ability to increase prices on existing products; the availability and retention of key personnel; our reliance on third party distributors, manufacturers and suppliers; our ability to maintain existing contracts and secure and integrate new customers; our ability to respond to changes and trends in customer and consumer demand, preferences and consumption; international sales and operations; changes in fuel and commodity costs; the effects on our results of operations from impacts of foreign exchange; changes in, or the failure to comply with, government regulations; and other risks detailed from time-to-time in the Company's reports filed with the SEC, including the annual report on Form 10-K for the fiscal year ended June 30, 2009 and the quarterly report on Form 10-Q for the quarter ended September 30, 2009. As a result of the foregoing and other factors, no assurance can be given as to future results, levels of activity and achievements and neither the Company nor any person assumes responsibility for the accuracy and completeness of these statements.