HAIN Celestial has “resharpened” its portfolio by selling off its North American snacks business.
Despite making up 22% of group revenues, the business had made “negligible” EBITDA contribution over the past 12 months, and the sale will make Hain’s remaining portfolio “meaningfully stronger” by allowing it to focus on higher-margin brands.
The New-Jersey headquartered owner of Ella’s Kitchen, Hartley’s and The Covent Garden Soup Co announced the sale today. It netted $115m in cash from the sale to Snackruptors Inc, a Canadian family-owned snack business, and is expected to close on 28 February.
All proceeds will be used to pay down company debt.
Hain’s North American portfolio will now focus on core areas such as tea, yoghurt, and baby/kids products, alongside its meal preparation platforms. Divested brands include Garden Veggie, Terra and Garden of Eatin’.
“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 organisational capabilities,” said CEO Alison Lewis.
“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’s share price jumped 7.3% in morning trading following the announcement.
The organic and health food specialist’s shares have suffered in recent years, falling from around $40 per share in 2021 to just $1.34 in early February 2026. A turnaround plan unveiled in September 2023 has so far failed to deliver, with the company forced to write off half a billion dollars from its results last year.
And despite having significantly lowered its FY25 sales and EBITDA guidance twice, Hain fell below expectations with a 7% slump in organic sales in the year to 30 June 2025.
The sale of its NA snacks business – a category in which even market leaders like PepsiCo have struggled – will mark a “constructive first step” in delivering a real turnaround, according to William Blair analyst Jon Andersen.
“Post-close, the North America segment should have gross margin above 30% and EBITDA margin in the double digits, compared to fiscal 2025 gross margin of about 22% and EBITDA of roughly 7%,” he added.
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