Empire Kosher Foods snapped up in acquisition deal
The group already owned approximately 20% of EK Holdings, with the purchase price for the remaining share standing at $57.6m, which includes the repayment of net debt.
In May 2010, Empire purchased Kosher Valley – a 'certified kosher, antibiotic-free, vegetarian-fed and humanely-raised all-natural branded chicken and turkey brand' – from Hain Pure Protein Corporation (HPPC), a wholly-owned subsidiary of The Hain Celestial Group, with HPPC receiving a 19% interest in Empire.
Irwin D Simon, founder, president and chief executive of Hain Celestial, said: "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."
Jeff Brown, chief executive of Empire, will continue to oversee its day-to-day operations.
He said that Empire’s products appealed to a broad range of consumers, not just those observing specific dietary customs, adding that the company felt it would be able to leverage opportunities to expand its distribution through its inclusion in the Hain Celestial Group.
Empire posted net sales revenue of more than $100m in 2014. It produces a range of chicken and turkey products, including fresh and frozen cuts, deli products, fully cooked, gluten-free and organic products in the US, as well as the Kosher Valley brand, which is sold exclusively in Whole Foods Market.
