Pegasus takes majority stake in Hain Pure Protein

MELVILLE, N.Y. - Hain Celestial Group Inc. said Monday that Pegasus Capital Advisors LP has acquired a controlling interest in the organic products company's Hain Pure Protein joint venture.

With the issuance of new Hain Pure Protein shares, Pegasus, a private equity fund manager, will own roughly 51 percent of the venture. Hain Celestial will own 49 percent.

Rodney Cohen, co-managing Partner of Pegasus, has been appointed chairman of Hain Pure Protein's board. Jay Lieberman, formerly vice president for financial planning and analysis at Hain Celestial, will serve as the joint venture's chief operating officer and chief financial officer.

Also, Hain Pure Protein has entered into a $30 million credit facility with Wachovia Bank.

Hain Pure Protein Corp. was formed in July 2005 to establish FreeBird Chicken, which specializes in natural, organic and antibiotic-free chicken. Hain Pure Protein's products now include a kosher brand of chicken and turkey.

Hain Celestial said its deal with Pegasus will not have a significant effect on its net income. The company noted, however, that Hain Pure Protein will no longer be consolidated into its financial statements.

Hain said Hain Pure Protein sales totaled $130.2 million for the nine months ended March 31.

Hain Celestial shares slipped 3 cents to $15.61 in afternoon trading.

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