Source: LOHAS Weekly Newsletter
Published: Friday, October 01, 1999

H.J. HEINZ TO ACQUIRE 19.5% STAKE IN HAIN: H.J. Heinz (HNZ) will acquire a 19.5% stake in Hain Food Group (HAIN) for about $100 million. The investment was based on a per-share purchase price in excess of HAIN’s $28.4375/share closing price on Sept. 24. HAIN will acquire from HNZ the trademark for Earth’s Best baby food, which it already has been marketing and distributing. Two HNZ officials will sit on HAIN’s board of directors and HNZ will provide procurement, manufacturing and logistics expertise to HAIN.

OATS FILES FOR $62.1 MILLION SECONDARY OFFERING: Wild Oats Markets (OATS) filed Sept. 29 with SEC for a secondary offering of about 2.4 million shares or about $62.1 million. Proceeds will be used to repay part of OATS’ $120 million revolving line of credit and also will finance future acquisitions, according to the filing. Underwriters are Salomon Smith Barney, Merrill Lynch & Co., U.S. Bancorp Piper Jaffray, and Hambrecht & Quist.

RXSD Posts Decreases in 4Q99, FY99 Net Income: Rexall Sundown (RXSD) posted FY99 net sales of $595.7 million, up 12.2% from FY98. Net income for the year was down 13.2%, to $60.1 million from pro forma net income of $69.2 million in FY98. Net sales for 4Q99 were $159 million, up 3.6% over 4Q98, but net income for 4Q99 was down 34% to $13.6 million from $20.6 million in 4Q98. Cash reserves also declined from FY98 to FY99 and inventories for the same period increased, according to RXSD.

TANIMURA & ANTLE IN ONE-THIRD PARTNERHIP WITH NATURAL SELECTION FOODS: Privately held conventional produce-growing giant Tanimura & Antle has joined San Juan Bautista, CA-based

organic-produce grower and shipper Natural Selection Foods as a one-third partner. Natural Selection, makers of Earthbound Farm-brand products, will retain two-thirds ownership in the company. Terms of the deal were not disclosed. Natural Selection Foods’ total annual sales are not disclosed, but the company says its Earthbound Farm-brand sales are on track to exceed $60

million in 1999. Tanimura & Antle also does not disclose sales.

DANONE ACQUIRES 20% OF LIFEWAY FOODS: French food company Groupe Danone ADS, with $14.4 billion in 1998 sales, executed a letter of intent with Lifeway Foods Inc. (LWAY) detailing how it will acquire up to a 20% equity stake in LWAY in privately negotiated nonmarket transactions. Danone will provide LWAY with marketing and sales support and use LWAY for distribution of its products in the U.S. LWAY reported 1998 earnings of $762,616 or $.20/share on $6.8 million in sales.