Mergers & acquisitions

: acquisition of Boulder Brands by Hain Celestial Group

Abstract

The food industry has been witnessing structural changes in the past decades, with organic and natural food establishing itself as a segment of considerable dimension. Driven by consumers’ change in preferences, including a desire for healthier lifestyles, the organic food sector has been growing at double-digit rates over the past 20 years. Hain Celestial Group and Boulder Brands, the two companies this thesis focuses on, are leaders in the organic food sector, with large portfolios of brands stemming from gluten-free to non-genetic modified food. Following Boulder Brands’ CEO resignation on June 2015, and shortly after, the announcement that the Company’s Board of Directors had hired a financial advisor to explore strategic alternatives to enhance shareholder value, this thesis proposes the potential acquisition of Boulder Brands by Hain Celestial Group for $14.63 per share in cash. This proposal represents a premium of 33.2% over Boulder Brands’ share price as of 31 December 2015. This highly accretive and synergy rich acquisition would have the potential to create a unique niche player in the gluten-free market, and combine the highly complementary portfolios of two worldwide organic food leaders.

Date of Award	17 May 2016
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	António Borges de Assunção (Supervisor)