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Cramer: I love the ‘arms dealers’ of organic foods

Buoyed by the recently announced $600 million planned acquisition of organic produce retailer Earthbound Farm, WhiteWave Foods represents a hot play in a hot niche sector, CNBC's Jim Cramer said Monday.

"I love this story," Cramer said on "Squawk on the Street." "These are arms dealers to the Whole Foods, to the Fairways, to Sprout, to the Fresh Markets. Don't forget Krogers and Safewaythey want to be in that."

(Read more: Milk producer WhiteWave to buy Earthbound Farm for $600 mln)

WhiteWave remains mainly known for nondairy milk products, such as almond and soy milks, and its move into produce seems in line with consumer tastes, said Cramer, who called it the opposite of the "diet soda movement."

"Natural foods is a big theme," Cramer said.

WhiteWave stock jumped during the opening of trading Monday. Earthbound also produces organic fruits and vegetables. The acquisition deal is targeted to close in early 2014.

Dairy giant Dean Foods spun off WhiteWave in 2012 as a separate company focusing on organic products. Cramer also suggested Hain Celestial Group as another player in the natural foods sector.

(Read more: Cramer's BBQ: Sizzling stocks on the menu)

— By CNBC's Jeff Morganteen. Follow him on Twitter at @jmorganteen and get the latest stories from "Squawk on the Street." The Associated Press contributed to this report.

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