Hain Celestial Sells North American Snacks Unit to Focus on Core Brands
In a strategic move to sharpen its focus and improve financial performance, The Hain Celestial Group, Inc. (NASDAQ: HAIN) has agreed to divest its North American snacks business. The buyer, family-owned Canadian snacks manufacturer Snackruptors Inc., will acquire brands including Garden Veggie Snacks™, Terra® chips, and Garden of Eatin’® snacks for $115 million in cash.
The transaction, announced February 2, signals Hain Celestial's intent to simplify its portfolio in a key market. Company leadership stated the sale will allow it to concentrate resources on core North American categories with stronger margins and cash flow profiles, namely tea, yogurt, baby and kids food, and meal preparation platforms. Brands like Celestial Seasonings® teas and Earth’s Best® Organic will now form the cornerstone of its regional strategy.
"This decision is about playing to our strengths," a company spokesperson told reporters. "The divested snacks portfolio, while recognizable, represented a significant portion of sales but contributed minimally to EBITDA. Our remaining business in North America has a demonstrably stronger financial profile." Indeed, the snacks unit accounted for 22% of the company's total net sales in fiscal 2025 and 38% of North American segment sales, yet delivered negligible earnings over the past year. In contrast, Hain's remaining North American operations reportedly deliver EBITDA margins in the low double digits, supported by gross margins above 30%.
The sale underscores a broader trend among packaged food giants to shed non-core or underperforming assets to enhance shareholder value and navigate a challenging inflationary environment. For Snackruptors, the acquisition represents a major expansion into the U.S. natural snacks arena.
Market Voices: A Mixed Reaction
David Chen, Portfolio Manager at Grove Street Advisors: "This is a textbook portfolio optimization move. Shedding a low-margin, capital-intensive segment to focus on higher-return categories is a clear positive for HAIN's long-term ROIC. The market should appreciate the focus on profitability over sheer revenue scale."
Maya Rodriguez, Consumer Staples Analyst: "While the strategic rationale is sound, the price tag gives me pause. $115 million for brands with that level of market presence feels light. It makes you wonder if this was a move born of necessity to shore up the balance sheet rather than a purely opportunistic divestiture."
Franklin "Frank" O'Reilly, Independent Market Commentator: "Another iconic natural brand sold off! First, they watered down the recipes, now they sell the family silver. Terra chips were a pioneer. In the hands of a smaller player, who's to say they won't be gutted for parts or disappear from shelves? This isn't strategy; it's surrender in the competitive snack aisle. Shareholders might get a short-term bump, but the brand heritage is being auctioned off."
Priya Mehta, Retail Consultant: "For Snackruptors, this is a brilliant deal. They acquire established shelf space and consumer loyalty overnight. The challenge will be maintaining the 'natural' ethos that Hain cultivated while achieving their own synergies. The integration will be key to watch."