Hain Celestial to sell North America snacks business to Snackruptors
Hain Celestial exits North American snacks to focus on higher-margin core categories and strengthen its balance sheet.
CANADA – Hain Celestial Group has reached a definitive agreement to sell its North American Snacks business to Canada-based Snackruptors Inc. for US$115 million in cash, marking a major step in the company’s efforts to simplify its portfolio and improve profitability.
The transaction includes the Garden Veggie Snacks, Terra chips and Garden of Eatin’ brands. Hain Celestial said the disposal will allow it to sharpen its focus in North America on core categories and markets with stronger margin and cash flow profiles to drive long-term growth.
According to the company, the sale follows a comprehensive strategic review launched in May, during which Hain said it would examine a broad range of options to enhance shareholder value.
That review was accompanied by a leadership overhaul, including the departure of former chief executive Wendy Davidson. Alison Lewis was appointed interim president and CEO and was confirmed in the role permanently in December.
In a statement announcing the transaction, Lewis said: “The sale of our North America 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 organisational capabilities.”
Lewis added that the proceeds would be used to strengthen the company’s financial position. “The resulting financial flexibility will enable increased investment over time, helping to drive sustainable, profitable growth and create long-term shareholder value,” she added.
Snackruptors president Rick Taborda said the acquired brands align well with the company’s strategy. The brands “have significant growth potential and represent a strong, complementary fit with our existing business,” he said.
Hain Celestial disclosed that its North America snacks portfolio accounted for 22% of total net sales in fiscal 2025 and 38% of North America segment net sales, but generated negligible EBITDA contribution over the past 12 months.
By contrast, the remaining North America portfolio delivers EBITDA margins in the low double digits, supported by gross margins above 30%.
Following the divestment, Hain’s flagship categories in North America will include tea, yogurt, and baby and kids foods, alongside its meal preparation platforms.
Key brands include Celestial Seasonings teas, The Greek Gods yogurt, Earth’s Best Organic baby and kids foods, and Spectrum Organic culinary oils.
The transaction is expected to close by February 28, 2026, subject to customary closing conditions.
Hain Celestial reported a net loss of US$531 million for the year ended June 30, driven by a US$496 million pre-tax non-cash impairment charge.
For the first quarter ended September 30, the company posted a net loss of US$21 million, compared with a US$20 million loss a year earlier, as quarterly sales declined 7% to US$368 million.
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