Hain Celestial Stock Climbs After Activist Investor Revealed
Engaged Capital, an activist investor, revealed its 9.9 percent stake in Hain Celestial, resulting in shares of the company to rise 12 percent last week after it was revealed the investor is pushing for sweeping board changes and a potential sale.
Engaged Capital proposed seven nominees for the eight-person board of the natural and organic food company, whose brands include Celestial Seasonings, Rudi’s Organic Bakery, Garden of Eatin’ and Terra. It also is urging Hain to explore the sale of part or all of the company, believing the company could sell for $46 to $73 per share due in large part to other recent acquisitions like General Mill’s purchase of Annie’s and Danone’s acquisition of WhiteWave Foods as well as Pinnacle Foods agreement to purchase Boulder Brands, according to a report in Bloomberg.
Hain, a supplier to Whole Foods, released its first financials in more than year after completing an internal accounting study. CEO Irwin Simon indicated that the recent acquisition of Whole Foods by Amazon would by benefit the company.