Hain Celestial has made the strategic decision to divest its North American snacks business as part of a comprehensive review of its operations and assets. This division is being sold to Canada-based Snackruptors for $115 million in cash.
The deal encompasses popular brands such as Garden Veggie Snacks, Terra chips, and Garden of Eatin’. In a statement released on February 2, Hain Celestial highlighted that this sale will streamline its North American operations, focusing on “core categories and markets with stronger margin and cash flow profiles to drive growth.”
Snackruptors, a family-owned company based in Ontario, specializes in crackers. President Rick Taborda emphasized the growth potential of the brands acquired, stating they “represent a strong, complementary fit with our existing business.”
This divestiture follows a “comprehensive” review initiated by Hain Celestial in May, where the company announced it would explore a “broad range of strategic options to enhance value.” This review came hand in hand with a leadership reshuffle. Former CEO Wendy Davidson exited the company, and Alison Lewis was appointed interim president before being confirmed in December.
In her recent statement, Lewis characterized 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.” Furthermore, she noted that “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 revealed that its North America snacks portfolio accounted for 22% of group net sales in fiscal 2025 and 38% of net sales from its North American business, yet it contributed only “negligible” EBITDA over the previous year. In contrast, the company reported that the remaining North America portfolio displays “meaningfully stronger” financial performance, boasting EBITDA margins in the “low double digits” and gross margins above 30%.
Post-sale, Hain Celestial plans to concentrate on categories such as tea, yogurt, children’s foods, and meal preparation, featuring brands like Celestial Seasonings, The Greek Gods yogurt, Earth’s Best Organic, and Spectrum Organic. The transaction is expected to close by the end of February, pending customary conditions.
Hain Celestial has encountered challenges recently, reporting a loss of $531 million for the year ending June 30 due to a pre-tax non-cash impairment charge of $496 million. For the first quarter ending September 30, the “better for you” brand reported a net loss of $21 million, slightly higher than the $20 million loss in the previous year. Adjusted net loss grew to $7 million from $4 million, while adjusted EBITDA fell from $22 million to $20 million. Quarterly sales decreased by 7% to $368 million, with organic sales down 6%. This decline was primarily due to a seven percentage-point drop in volume/mix, which was partially offset by a one-point benefit from pricing.
In summary, Hain Celestial’s decision to divest its snacks division aligns with emerging food and beverage industry trends, signaling a focused shift towards high-margin categories in the food and drink business. The changes reflect responsiveness to food and drink consumer trends, ensuring the company is well-positioned for future growth.
