Hain Celestial has decided to offload its North American snacks business as part of the US group’s review of its operations and assets.
The division is being sold to Canada-based Snackruptors for $115m in cash.
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The deal covers the Garden Veggie Snacks, Terra chips and Garden of Eatin’ brands.
In a statement yesterday (2 February), Hain Celestial said the sale will simplify its North American operations around “core categories and markets with stronger margin and cash flow profiles to drive growth”.
Ontario-based Snackruptors is a family-owned group centred around crackers.
Rick Taborda, the president of Snackruptors, said the brands “have significant growth potential and represent a strong, complementary fit with our existing business”.
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By GlobalDataThe disposal follows a “comprehensive” review Hain launched in May, when the US food and drinks major said it would examine a “broad range of strategic options to enhance value”.
The review was accompanied by a leadership overhaul.
Then-CEO Wendy Davidson exited the business, with Alison Lewis appointed interim president and CEO. Lewis was confirmed in the role permanently in December.
In yesterday’s statement, Lewis described the sale of the snacks business as “a decisive first step we are taking to sharpen our focus on categories and platforms in key markets where we can leverage our strongest organisational capabilities”.
She added “Proceeds from the transaction will be used to reduce debt, strengthening the company’s financial position and leverage profile. The resulting financial flexibility will enable increased investment over time, helping to drive sustainable, profitable growth and create long-term shareholder value.”
Hain Celestial said its North America snacks portfolio accounted for 22% of group net sales in fiscal 2025 and 38% of the net sales from its business in North America but delivered only “negligible” EBITDA over the past 12 months.
By contrast, the company said the remaining North America portfolio shows “meaningfully stronger” financial performance, with EBITDA margins in the “low double digits” and gross margins above 30%.
Following the sale, Hain Celestial’s focus categories in North America will include tea, yogurt, children’s foods and meal preparation, centred on brands such as Celestial Seasonings, The Greek Gods yogurt, Earth’s Best Organic and Spectrum Organic.
The completion of the sale is expected by the end of February subject to customary closing conditions.
Hain Celestial reported a loss of $531m for the year ended 30 June, driven by a pre-tax non-cash impairment charge of $496m.
For the first quarter to 30 September, the “better for you” brand posted a net loss of $21m, compared with a $20m loss a year earlier.
Adjusted net loss widened to $7m from $4m, while adjusted EBITDA eased to $20m from $22m.
Quarterly sales declined 7% to $368m, with organic sales down 6%. The company attributed the drop to a seven percentage-point fall in volume/mix, partially offset by a one-point benefit from pricing.
