Hain Celestial divests UK fruit business to Elaghmore

US-based food company Hain Celestial has completed the strategic sale of its fruit business in the UK, including Orchard House Foods business and associated brands, to private equity firm Elaghmore.

Financial details of the deal remain undivulged.

Hain Celestial president and CEO Mark Schiller said: “We are pleased to complete the strategic sale of our fruit business to Elaghmore, a private equity firm focused on buying and growing UK businesses.

“The divestment of this complex, non-core asset fully aligns with our brand simplification and strategic transformation processes.”

Hain Celestial expects intends to use proceeds from the divestment to boost its international business.

The company also expects that the deal will enable to it improve it adjusted EBITDA margins.

Schiller added: “By divesting this business, which was negatively impacted by the Covid-19 pandemic, the remaining Hain Celestial business will show immediate improvement in its growth rate and margins, allowing us to reinvest capital behind the strength of the remaining International platform.

“We remain confident in our ability to continue to improve our overall margin and cash flow profiles to fuel sustainable long-term growth and profitability.”

For this deal, Spayne Lindsay & Co served as financial advisor and DLA Piper UK acted as legal counsel to Hain Celestial.

Last July, Hain Celestial completed the sale of its French organic brand Danival to a subsidiary of Wessanen for an undisclosed sum.

Danival was engaged in the production of savoury foods, sweet food products and natural salts. It also offered Japanese food items. Its product portfolio included purees, soups, salads, dried fruits and sauces.

The divesture of the French organic brand was part of Hain Celestial’s strategy to simplify its portfolio.