Hain Celestial sells snacks business to focus on yogurt and other brands
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Hain Celestial Group reached an agreement to sell its North American Snacks business, including Garden Veggie Snacks, Terra chips and Garden of Eatin' snacks, to Snackruptors Inc., a Canadian, family-owned snacks manufacturer, for $115 million in cash.
This transaction will allow Hain Celestial to move forward with a simplified portfolio in North America focused on "core categories and markets with stronger margin and cash flow profiles to drive growth." Going forward, the company’s flagship categories across North America will include tea, yogurt, and baby/kids, along with its meal preparation platforms. Hain’s brands in North America include Celestial Seasonings teas, Greek Gods yogurt, Earth's Best Organic baby and kids foods and Spectrum Organic culinary oils.
“As an output of the previously announced strategic review process of our company’s portfolio, the sale of our snacks business is a decisive first step we are taking to sharpen our focus on categories and platforms in key markets where we can leverage our strongest organizational capabilities. 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," Alison Lewis, Hain Celestial’s president and CEO, said,
Lewis continued, “The transaction we are announcing today marks a significant moment for Hain Celestial, and I am confident that we have found the right home for these beloved snack brands and our employees who will support them as part of Snackruptors. I want to express my gratitude to the many dedicated team members who have built our North American Snacks business over the years. Their commitment has been instrumental in our progress to reaching this milestone.”
The transaction is expected to close by February 28, subject to customary closing conditions.
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