Hain At It Again-Spectrum Latest Acquisition By Ever Hungry Irwin Simon

Hain At It Again-Spectrum Latest Acquisition By Ever Hungry Irwin Simon

The ever acquisition hungry Hain Food Group, led by our industry’s own Little Caesar, Irwin Simon, is reported to have reached terms to purchase Petaluma, California based Spectrum Organic Products for approximately $34.5 million, or 70 cents a share, about 5% over Spectrum’s current evaluation on the American Stock Exchange.

Once again Hain’s new purchase will result in owning two competing products lines, in this case Hain oils and the natural product channel leader, Spectrum.  Given Spectrum’s longstanding leadership look for Hain to discontinue it’s own brand while keeping its small line of Hollywood oils in mainstream channels.

Additionally, Hain’s now enters the supplement business for the first time, with Spectrum’s specialty line of supplement oils.  We wonder if the purchase of a full-line supplement company is on the radar next.

NBN has always been a big fan of Spectrum and it’s founder Jeth Phillips, but we wonder what Spectrum’s prospects for continued long term growth will be under the auspices of Hain, which seems to consistently turn innovative peak performers into stagnant brands only a year after buying them.

 

 

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