Hain Celestial Group Inc. may be losing one of its biggest shareholders. H.J. Heinz Co. said Friday it is exploring a sale of all its 6.1 million shares in Hain, the Melville-based maker of natural and organic food and personal care products. Heinz has about a 16.5-percent stake in Hain.
Hain Celestial Group Inc. may be losing one of its biggest shareholders.
H.J. Heinz Co. said Friday it is exploring a sale of all its 6.1 million shares in Hain, the Melville-based maker of natural and organic food and personal care products. Heinz has about a 16.5-percent stake in Hain.
For years, there has been talk of Heinz buying all of Hain, but such a deal never came to pass. The announcement late Friday, however, may have left the door open for another suitor to buy Hain, now that Heinz will no longer own such a large stake. Hain's stock, however, fell on the day by 3 percent to $21.76 per share.
Heinz said the move will allow the company to focus on its core businesses, including condiments, sauces, meals, snacks and infant nutrition.
Hain representatives did not return calls for comment. In a statement, the company said it has filed a registration statement for the sale with the Securities and Exchange Commission.
Hain and Heinz have had a relationship dating back to 1999, when Heinz first sold its Earth's Best organic baby food line to Hain. Heinz made a $100-million investment in Hain, then owning nearly 20 percent of the Melville company's shares.
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Source: Knight Ridder/Tribune Business News
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