Whole Foods Market, Inc. (WFM), Sprouts Farmers Market Inc (SFM): Carl Icahn Sells The Hain Celestial Group, Inc. (HAIN); Should You?

Prior to buying Ella’s, the company bought juice company BluPrint in January 2013. BluPrint Cleanse, founded in 2006, has expanded across the juice category and into fruit and nut snacks. That expansion generated $20 million in 2012 sales, double 2011’s level. Hain thinks it can grow the brand by introducing it to its existing accounts.

In addition to Ella’s and BluPrint, Hain bought Hartley’s — a maker of jams, Sun-Pat — a maker of peanut butter, and Gale’s — a maker of honey, from Premier Foods in August 2012. The move is part of a broader strategy to grow Hain’s shelf space in U.K. grocers beyond refrigerated products.

The final take

Overall, the company benefits as mass merchandisers and convenience stores increase shelf space for natural foods to compete against grocers like Whole Foods Market, Inc. (NASDAQ:WFM). Hain also benefits from launching acquired brands in new markets, consolidating costs, and leveraging relationships for cross-selling. The company believes it will save $40-$50 million in fiscal 2014 thanks to productivity and cost savings. That’s $10-$20 million more than it saved from similar measures this year.

And, while investors shouldn’t be buying and selling every day, there are certain times during the year when stocks tend to reward or punish. In Hain’s case, the next 3 months are usually good for shareholders. Over the past decade, shares have increased in 8 of the past 10 years through the end of November, returning a median 15.38%.

That suggests now may be a good time to consider buying shares in the natural foods company, despite Mr. Icahn’s profit taking.

The article Carl Icahn Sells Hain Celestial; Should you? originally appeared on Fool.com and is written by Todd Campbell.

Todd Campbell has no position in any stocks mentioned. The Motley Fool recommends Apple, Hain Celestial, and Whole Foods Market. The Motley Fool owns shares of Apple, Hain Celestial, and Whole Foods Market. 

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