Hain Daniels worth more for the sum of its parts, claims expert

His comments followed a report by Sky News ​that claimed PAI Partners – which recently partnered with Charles Jobson to acquire Wessanen – was looking to purchase Hain Daniels, owner of the Jam brand Hartley’s.

Wild said the British arm of the business had had a torrid time in recent years and had become a problem Hain Celestial could do without.

Lack of growth​

Through a sustained acquisition programme, Hain Daniels has bought a number of brands – such as Sun-Pat, Robertson’s and Frank Coop’s – but none of them has shown dynamic and high growth, Wild explained.

“The result is that it has three divisions – fruit, chilled/frozen and grocery – which don’t sit comfortably together and are quite a disparate bundle of brands,”​ he said.

“It is a business which, in a normal economic climate, is probably worth more for the sum of the parts than for the whole. It does look like a classic break-up target and PAI Partners probably sees it that way. It’s very difficult to value, but it will be a long way short of the ‘value of investment figure’.”​

Pre-tax losses ​

Accounts for the business to June 2018 reinforced Wild’s opinion. While the value of investment in Hain Daniels’ subsidiaries was reported at £430m, the total business saw a pre-tax loss of £7.7m, similar to the previous year.

“It has been rumoured for some time that Hain was looking to offload the UK business,” ​Wild added.

Meanwhile, last week, specialist ingredients firm Thew Arnott Group completed the sale of its colours business​​ to a specialist firm in Germany for an undisclosed sum, which allowed the firm to focus on its core ingredients business.