Organic and natural products giant Hain Celestial has acquired Rudi's Organic Bakery from Charterhouse Equity Partners in a $61.3m deal.
Rudi’s - which is based in Boulder, Colorado - produces around 60 products including USDA-certified organic breads, buns, bagels, tortillas, wraps and soft pretzels and GFCO-certified (gluten-free) natural breads, buns, pizza crusts, tortillas, snack bars and stuffing in the US and Canada.
In calendar year 2013, Rudi's generated approximately $60m in net sales, said Hain Celestial founder and CEO Irwin Simon, who said he expected to be able to deliver “significant synergies” by bringing Rudi's into the Hain Celestial empire.
He added: “At Hain Celestial we look for the latest trends, and consumers are increasing their purchases of whole grains, organic and gluten-free product offerings.
"As a company committed to driving product innovation, we plan to build upon Rudi's leadership position and see the opportunity to take Rudi's into other categories where the brand does not have products today.
“We have a proven ability to expand great brands and products into various channels of distribution including the conventional, mass and club channels where we see significant opportunities for increased distribution.”
Rudi’s was founded in the late 1970s by Sheldon Romer and began producing organic products in the early 1990s. Today, it is the leading producer of certified organic bread in the US and a major player in the gluten-free market.
Hain said it would provide more detail on the deal when it unveils its third-quarter results on May 8.
Rudi's CEO Jane Miller to leave
However, investor relations VP Mary Celeste Anthes confirmed to FoodNavigator-USA that Rudi's CEO Jane Miller would be leaving to pursue other opportunities.
Asked whether Rudi's would be consolidated within the Hain Celestial operation or run as a standalone business unit, she added:"As with other recent acquisitions, Rudi's will be consolidated into Hain Celestial US but will retain it's own branded identity."
Asked about synergies, she said: "Hain Celestial expects to leverage its infrastructure—purchasing and R&D as well as its sales and marketing platforms—with the acquisition of Rudi’s."
Growth would come from increased distribution in the natural, grocery, mass and club channels, she added.
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