Hain Celestial Announces CEO Succession Plans -- Update

By Nishant Mohan and Chris Wack

The Hain Celestial Group announced a chief executive officer succession plan Monday, which would allow current CEO Irwin D. Simon to become nonexecutive chairman of the board once his replacement is found.

Mr. Simon, who founded the company in 1993, joins a growing list of food and beverage industry CEOs to step down. As the industry face changing consumer habits, at least 17 other CEOs have announced their departures since May 2016, including the leaders of Campbell Soup Co., General Mills Inc., Kellogg Co., Nestlé USA, Hershey Co., J.M. Smucker Co. and Hostess.

Mr. Simon's planned departure comes as the maker of natural and organic foods and personal care products has been reviewing its business. Hain Celestial reached an agreement with activist investorEngaged Capital LLC in September, leading to changes in the company's board after pushing for the addition of directors with more food-industry experience. Earlier this year, the company announced it was searching for a buyer for its Hain Pure Protein Corp. business. It has said it expects to sell the meat business in the first half of fiscal 2019.

Hain's other brands include Celestial Seasonings teas, Terra vegetable chips and BluePrint juice.

On Monday, the company also reiterated its guidance for fiscal 2018, which ends June 30, including earnings of $1.11 to $1.18 a share on an adjusted basis, as well as sales of $2.4 billion to $2.5 billion.

Hain's stock was up 0.61% on Monday afternoon, with shares trading at $30.06 a share. The stock has is down 29% year-to-date.

(END) Dow Jones Newswires

June 25, 2018 15:06 ET (19:06 GMT)

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