Dive Brief:
- Hain Celestial plans to sell its international business to Aurelius, a global private equity firm, for approximately $323 million. Proceeds are expected to be between $305 million and $310 million, with the transaction closing by the end of Hain’s fiscal second quarter on December 31.
- The sale includes brands like Joya and Natumi plant-based beverages, Hartley’s jelly, and Linda McCartney Foods. This move aims to simplify Hain’s operations and reduce debt.
- Post-sale, Hain will retain brands such as Celestial Seasonings teas, The Greek Gods yogurt, and Earth’s Best Organic baby food.
Dive Insight:
- Once a major acquirer, Hain has focused on streamlining its business this year. In February, Hain announced the divestment of its North American snacks business to Snackruptors for $115 million.
- The international business generated $151 million in sales during the fourth quarter, making up almost 60% of the company’s overall sales for that period. After the sale, Hain’s remaining business generated $112 million in sales during the same quarter.
- Hain has shifted its strategy towards focusing on core brands and markets with higher growth potential. The competitive landscape has changed, with larger food companies launching similar products, impacting Hain’s previously strong market position.
- CEO Alison Lewis stated that completing this transaction will help Hain simplify its portfolio and focus on reducing debt, ultimately resulting in a more streamlined North American operation with a focus on core growth categories.
- Additionally, Hain is implementing cost-cutting measures expected to save approximately $16 million annually compared to fiscal 2026.
