Hain closes $321M deal for Premier Foods brands

MELVILLE, N.Y. (AP) -- The Hain Celestial Group closed on its acquisition of Premier Foods PLC's lineup of packaged grocery brands for about $321 million in cash and stock, the natural and organic food company said Monday.

The deal includes a handful of brands that cover a range of products such as peanut butter, honey, jams, fruit and jelly, marmalade and chocolate. The deal also includes the company's Histon manufacturing base in the United Kingdom.

Hain said it expects the acquisition to begin boosting its profits in the second quarter of its fiscal year 2013.

Net sales during the eight-month period from closing to June 30 are expected to total about $180 million and boost the company's earnings per share for that period by about 25 cents.

Under the terms of the agreement, Hain paid 170 million British pounds ($272.9 million) and 836,426 shares of its common stock. Based on the company's Friday closing stock price of $57.46, the stock portion of the deal is worth about $48.1 million.

The business being acquired generated over $250 million in sales in its last fiscal year. It will become part of the Hain Daniels Group, which was established in 2011 after Hain acquired The Daniels Group. The business makes and sells fresh food and drinks in eight refrigerated and frozen food categories under a variety of brands.

The Hain Celestial Group Inc. said the acquisition furthers its expansion in the United Kingdom and makes Hain Daniels one of the top food and beverage suppliers in that country.