Hain Celestial Group Inc. is considering selling its protein business, a move that could eventually lead to the sale of the company, CNBC reported Feb. 7, citing CEO Irwin Simon's statement to analysts and unnamed sources.
The U.S. organic and vegetarian food maker reported results for the second quarter of fiscal 2018 ended Dec. 31, 2017, and reportedly said it is exploring the divestiture of Hain Pure Protein Corp., which operates Empire Kosher Poultry and Plainville Farms. Simon told analysts that the protein division is not the focus of the company's go-forward strategy, according to CNBC.
Hain entered into a $1.3 billion credit facility the same day.
The report said Hain has long been an acquisition target, with large food companies including Nestlé SA considering a bid for it. The sources told CNBC that there is no one clear buyer for all of Hain's brands and that divesting its protein business could help solve the issue.
Among the potential buyers for the protein unit include Tyson Foods Inc., Cargill Inc. and WH Group Ltd.'s Smithfield Foods Ltd., according to the report.
The news outlet added that Haim is under pressure from activist investor Engaged Capital, whose founder, Glenn Welling, now sits on Hain's board following a settlement with the firm.
