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United Natural buying Haddon House; cuts fiscal 2016 outlook

NEW YORK (AP) — United Natural Foods is buying Haddon House Food Products Inc., along with some real estate, for about $217.5 million. The move will help the food distributor expand its gourmet and ethnic product categories across the U.S. United Natural also announced Monday that it is lowering...

NEW YORK (AP) — United Natural Foods is buying Haddon House Food Products Inc., along with some real estate, for about $217.5 million. The move will help the food distributor expand its gourmet and ethnic product categories across the U.S.

United Natural also announced Monday that it is lowering its fiscal 2016 guidance, citing its performance to date and the current outlook for the rest of the fiscal year.

Its shares dropped 8 percent in morning trading.

Haddon House is a distributor of natural and organic and gourmet ethnic products in the eastern part of the United States.

Once the transaction is complete, Haddon House will become a subsidiary of United Natural Foods Inc. The acquisition is expected to add to United Natural's earnings in fiscal 2017. The deal is targeted to close at the start of the fiscal fourth quarter.

For fiscal 2016, United Natural now foresees an adjusted profit in a range of $2.34 to $2.44 per share. Revenue is now anticipated between about $8.31 billion and $8.43 billion. Its prior guidance was for an adjusted profit between $2.79 and $2.89 per share on revenue in a range of about $8.43 billion to $8.59 billion.

Analysts polled by FactSet expect full-year earnings of $2.81 per share on revenue of $8.46 billion.

United Natural Foods Inc. shares dropped $8.32, or 21.2 percent, to $30.93 in morning trading. Its shares have fallen more than 62 percent over the past year.

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