Nestlé considers acquiring organic food manufacturer | Progresiv

Nestlé is allegedly interested in a Hain Celestial acquisition. The food company manufactures organic and vegetarian food and is currently valued at about 3.5 billion euros.

The purchase is Nestlé’s next step in the healthy food market, which has gained importance. According to Bloomberg sources, initial talks have already taken place, but no official bid has been lodged.

Hain Celestial has been at the center of acquisition rumours for a while, with several American companies having expressed an interest as well. After the news broke, the share grew 11 %, which increased its value to 4.2 billion dollars (3.6 billion euro).

According to analysts, Hain Celestial is not that interesting as a target, particularly because of its high market value, unless costs can be cut because of synergies. A purchase could be good news for the American company, because its profit slumped in 2016 – from 165 million dollars (140 million euro) to 47 million dollars (40 million euro). Luckily, it grew a bit in 2017, to 67 million dollars (57 million euro). (www.retaildetail.eu)