Japan’s Kameda Seika is selling one of its US subsidiaries, Mary’s Gone Crackers, to a unit of Canadian food manufacturer Dare Foods.
The deal involves a debt-to-equity swap at Mary’s Gone Crackers before the shares are transferred to Rosseau Incorporated, Dare’s US arm.
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While the value of the transaction remains undisclosed, Kameda confirmed it represents less than 15% of its consolidated net assets.
Kameda views the US as the “most important base for overseas expansion”, where it also operates consolidated subsidiary Kameda USA and affiliate TH Foods.
In 2012, the rice crackers maker acquired Mary’s Gone Crackers to enter the US “better for you” market, focusing on organic and gluten-free products.
However, Mary’s Gone Crackers faced challenges, including rising raw material costs.
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By GlobalDataNevada-based Mary’s Gone Crackers posted a net profit of $784,000 in 2021, followed by a net loss of $20.3m in 2022 that deepened to $22.2m in 2023.
Net sales totalled $35.5m in 2021, rose to $38m in 2022 and dipped to $36.3m in 2023.
Kameda Seika explained that although Mary’s Gone Crackers has undertaken initiatives such as “improving production efficiency and launching new products”, it has ultimately chosen to redirect its focus.
“After reviewing our US strategy, we determined that concentrating resources on the growth of TH Foods would generate more effective synergies,” Kameda Seika said.
Kameda entered the US in 1989 through a partnership with Sesmark Foods, now TH Foods, producing rice crackers and snacks.
In March, Kameda Seika agreed to acquire the remaining 50% stake in TH Foods from Mitsubishi in a deal worth $221m.
Alongside this approach to inorganic growth, the group also aims to “further invigorate” rice cracker offerings in the US.
