Hain Celestial Review Sparks Snacks Disposal

Packages of Terra chips astatine market store. Credit: The Image Party/Shutterstock.com.

Hain Celestial has decided to offload its North American snacks business arsenic portion of nan US group’s reappraisal of its operations and assets.

The section is being sold to Canada-based Snackruptors for $115m successful cash.

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The woody covers nan Garden Veggie Snacks, Terra chips and Garden of Eatin’ brands.

In a connection yesterday (2 February), Hain Celestial said nan waste will simplify its North American operations astir “core categories and markets pinch stronger separator and rate travel profiles to thrust growth”.

Ontario-based Snackruptors is simply a family-owned group centred astir crackers.

Rick Taborda, nan president of Snackruptors, said nan brands “have important maturation imaginable and correspond a strong, complementary fresh pinch our existing business”.

The disposal follows a “comprehensive” reappraisal Hain launched successful May, erstwhile nan US nutrient and drinks awesome said it would analyse a “broad scope of strategical options to heighten value”.

The reappraisal was accompanied by a activity overhaul.

Then-CEO Wendy Davidson exited nan business, pinch Alison Lewis appointed interim president and CEO. Lewis was confirmed successful nan domiciled permanently successful December.

In yesterday’s statement, Lewis described nan waste of nan snacks business arsenic “a decisive first measurement we are taking to sharpen our attraction connected categories and platforms successful cardinal markets wherever we tin leverage our strongest organisational capabilities”.

She added “Proceeds from nan transaction will beryllium utilized to trim debt, strengthening nan company’s financial position and leverage profile. The resulting financial elasticity will alteration accrued finance complete time, helping to thrust sustainable, profitable maturation and create semipermanent shareholder value.”

Hain Celestial said its North America snacks portfolio accounted for 22% of group nett income successful fiscal 2025 and 38% of nan nett income from its business successful North America but delivered only “negligible” EBITDA complete nan past 12 months.

By contrast, nan institution said nan remaining North America portfolio shows “meaningfully stronger” financial performance, pinch EBITDA margins successful nan “low double digits” and gross margins supra 30%.

Following nan sale, Hain Celestial’s attraction categories successful North America will see tea, yogurt, children’s foods and repast preparation, centred connected brands specified arsenic Celestial Seasonings, The Greek Gods yogurt, Earth’s Best Organic and Spectrum Organic.

The completion of nan waste is expected by nan extremity of February taxable to customary closing conditions.

Hain Celestial reported a loss of $531m for nan twelvemonth ended 30 June, driven by a pre-tax non-cash impairment complaint of $496m.

For nan first 4th to 30 September, nan “better for you” brand posted a nett nonaccomplishment of $21m, compared pinch a $20m nonaccomplishment a twelvemonth earlier.

Adjusted nett nonaccomplishment widened to $7m from $4m, while adjusted EBITDA eased to $20m from $22m.

Quarterly income declined 7% to $368m, pinch integrated income down 6%. The institution attributed nan driblet to a 7 percentage-point autumn successful volume/mix, partially offset by a one-point use from pricing.