The Hain Celestial Group has acquired the remaining approximately 80% that it did not already own of EK Holdings, Inc. and its wholly-owned subsidiary, Empire Kosher Poultry, Inc. (Empire) based in Mifflintown, Pennsylvania, US.
The purchase price for the remaining approximately 80% of Empire was US$57.6 million, which includes net debt that was repaid at closing.
In May 2010 Empire purchased Kosher Valley, the first brand of certified kosher antibiotic-free, vegetarian fed and humanely raised all natural branded chicken and turkey products, from Hain Pure Protein Corporation (HPPC) at which time HPPC received a 19% interest in Empire.
Empire offers kosher antibiotic- and hormone-free chicken and turkey products including fresh tray pack, frozen, deli, fully cooked, gluten-free and organic products in the US as well as the Kosher Valley brand sold exclusively in Whole Foods Market.
The company generated over US$100 million in net sales in calendar year 2014 and is expected to be accretive to Hain Celestial’s earnings in fiscal year 2016,” said Irwin D. Simon, founder, president and CEO of Hain Celestial.
“Empire expands our Farm to Table product offerings, a growing category that appeals to those seeking ‘the pure foods trend,’ including our core natural and organic consumers.
“We plan to expand the product offerings into deli, fresh prepared foods and other grocery categories.”
“Additionally, we expect to leverage our infrastructure to create revenue and procurement synergies, and we paid an attractive price considering the multiples being paid for antibiotic-free protein companies today.”
Empire practices sustainable farming, promotes social justice and strictly observes Jewish dietary laws to produce among the best tasting and highest quality all-natural poultry products.
Empire chicken and turkey products are not only for those who keep kosher for religious reasons but for those who want to eat healthfully and safely as well as responsibly by promoting worker and animal rights, protecting the environment and supporting local farmers and their communities.
Hain Celestial has more than 2,000 products that are kosher certified in its branded portfolio of natural and organic products.
According to a December 2011 Mintel Group Ltd. Report, kosher foods have an aura of purity and healthfulness, which should continue to fuel growth in the category.
With the acquisition of Tilda basmati rice in January 2014, the company has expanded its ethnic footprint and product offerings including geographically into India and the Middle East, where it believes it may have opportunities to expand its organic and natural kosher product offerings.
