Hain Pure Protein buys Pilgrim's Pride turkey business
March 10, 2008
by FoodBusinessNews.net Staff
MELVILLE, N.Y. — Hain Pure Protein Corp. has acquired a turkey production facility and distribution facility in New Oxford, Pa., from Pilgrim’s Pride Corp.
Hain Pure Protein is a joint venture between Pegasus Capital Advisors, L.P. and The Hain Celestial Group.
"This strategic investment positions Hain Pure Protein at the forefront of the natural and organic sector of the poultry industry and gives us capabilities to expand our offerings of branded, premium products," said Irwin D. Simon, president and chief executive officer of Hain Celestial. "As the facility immediately begins to transition to antibiotic-free, adding New Oxford Foods to existing brands Plainville Farms and FreeBird Chicken gives Hain Pure Protein an additional scale with the capacity to meet increasing volume demands and for value-added all-natural, antibiotic-free chicken and turkey products."
Financial terms of the acquisition were not released. As a result of the sale, Pilgrim’s Pride is no longer a producer of turkey.
"The sale of the New Oxford complex will allow Pilgrim’s Pride to focus on our long-term strategy of building our core chicken business," said Clint Rivers, president and chief executive officer. "Despite the positive improvements made in our turkey business over the past few years, we found that our small size and scale in this segment made it difficult to achieve acceptable levels of profitability on a consistent basis."
Pilgrim’s Pride had U.S. turkey sales worth $122.3 million in fiscal 2007. Hain Celestial is expecting the acquisition to be accretive to earnings in fiscal 2009.