YHS and its subsidiary YHS Malaysia will each take an equity stake of US$1 million (S$1.67 million) in Hain Celestial. Hain Celestial will in turn invest US$2 million (S$3.3 million) to subscribe for about 1.3 million new YHS shares. Both parties have the option of increasing their mutual equity investments by up to another US$6 million each.

“This agreement paves the way for further business collaboration between YHS and Hain Celestial, including mutual market expansion, product development and marketing, exchange of advanced food and nutrition technology, cross-selling facilities and capabilities. It will provide YHS and Hain Celestial with access to new distribution channels as well as open new and different product markets, thereby broadening each other's global footprint and product offerings,” said Mr Philip Ng, CEO of Far East Organization and Chairman & CEO of YHS.

The global organic and natural food industry is a fast expanding market fuelled by growing demand among consumers worldwide for products made of pure and natural ingredients. From just US$79 million in 1980, worldwide sales for organic and natural products grew tremendously to over US$60 billion in 2004 and are expected to reach some US$100 billion in 2008.

Mr Philip Ng, CEO of FEO and Chairman & CEO of YHS, with Mr Irwin Simon, Hain Celestial President and CEO, and Mr Owen Ow, CEO and Managing Director, YHS (M) (at Mr Ng's left).

Hain Celestial President and CEO Mr Irwin Simon said the potential of the industry in Asia is enormous. “We're looking at significant numbers coming out of this region, from the size of population and the awareness level. Education and public knowledge will drive this marketplace much quicker than it did in the US.”

The NASDAQ listed Hain Celestial Group is a leading natural and organic beverage, snack, specialty food and personal care products company in North America and Europe. Its natural and organic food product lines consist of some 2,200 branded items, which are available in 50 states in the US and in about 50 countries, including Singapore, primarily through specialty and natural food distributors.

Hain Celestial's stable of well-known brands include Celestial Seasonings®, Terra Chips®, Garden of Eatin®, Health Valley®, WestSoy®, Earth's Best®, Arrowhead Mills®, Hain Pure Foods®, Hollywood®, Walnut Acres Organic®, Imagine Foods®, Rice Dream®, Soy Dream®, Rosetto®, Ethnic Gourmet®, Yves Veggie Cuisine®, Lima®, Biomarché®, Grains Noirs®, Natumi®, JASON® and Zia® Natural Skincare.

YHS and Hain Celestial share positive synergies in tapping on the vast natural and organic foods market. Both companies boast heritage brands that are steep in history; both have established specialisation and capabilities in the production, marketing, and distribution of natural food products. Hain Celestial's businesses span mainly North America and Europe, while YHS has established vast market foundations in Asia.

In the next six to 12 months, both companies will co-develop a range of products such as teas, sauces and soy beverages.