Hain Celestial Sheds Snack Brands in Strategic Overhaul

Hain Celestial US4052171000

In a decisive move to streamline its operations and strengthen its financial position, Hain Celestial Group has announced the sale of its North American snack business for $115 million in cash. The details of the transaction with Snackruptors Inc. were disclosed alongside the company's second-quarter financial results. This divestiture represents a critical step in the firm's ongoing strategic transformation.

• Transaction Value: $115 million (all-cash deal)
• Divested Brands: Garden Veggie Snacks, Terra Chips, and Garden of Eatin’
• Debt Burden: Total debt of $716 million (as of Q1 fiscal 2026)
• Expected Close: On or before February 28, 2026

The sale is a cornerstone of a broader plan to reduce operational complexity and concentrate resources on more profitable core categories. While the snack division contributed approximately 22% of net sales in fiscal 2025, its contribution to EBITDA over the trailing twelve months was negligible.

Under the leadership of CEO Alison Lewis, who was permanently appointed in December 2025, the company is pivoting to a leaner regional operating model. Management will now direct its efforts toward categories where it holds structural advantages, including tea (Celestial Seasonings), yogurt (The Greek Gods), and baby & toddler food. Exiting this low-margin segment is expected to boost the EBITDA margin of the remaining North American portfolio.

Addressing the Balance Sheet

The transaction is driven by a pressing need to improve Hain Celestial's financial health. The company reported a net loss of $21 million for the first fiscal quarter, which ended in November 2025. Its net secured leverage ratio stood at a concerning 4.8x at that time.

Proceeds from the $115 million sale will be applied directly to debt reduction. Against a total debt load of $716 million, this cash infusion provides meaningful financial flexibility. The strategic objective is clear: by withdrawing from capital-intensive, low-return businesses, Hain Celestial aims to reposition itself on a stable path to growth.

With a targeted completion date of February 28, 2026, this portfolio pruning allows the company to immediately channel available funds toward reducing interest expenses and reinforcing its powerhouse brands.