27 September 2006 - Earlier this month FLEXNEWXS reported that the Hain Celestial Group sold Biomarche, its Belgian-based provider of fresh organic fruits and vegetables, to Pro Natura, a French organic food distribution company. Terms of the transaction were not disclosed.
"As the Company continues to expand in Europe, we plan to focus on fresh prepared foods and higher margin branded products. The sale of Biomarche organic products representing $18 million in sales that were non-branded and lower margin should increase our overall margins in Europe. This divestiture enables us to streamline our business and focus on our core strategy of natural and organic brands and products that complement our growth plan in Europe," company CEO Irwin Simon said in a statement.
The French financial newspaper ‘Les Echos’ reported that the acquisition would enable Pro Natura to widen its presence to Belgium. What’s more the daily added that Pro Natura will benefit from Biomarché’s supply deal with supermarket chain Delhaize and its 200 outlets nationwide.
Pro Natura will supply 7,000 tons of fresh fruit and vegetable per annum for the chain. This would represent a turnover of 15 million euro.
Currently, Pro Natura supplies 300 outlets in France, as well as Switzerland and Germany. Turnover for these three countries amounts to 45 million euro.