In a decisive strategic shift, Hain Celestial is radically streamlining its portfolio. The company’s management is moving away from a focus on sheer revenue size, opting instead for a more concentrated and profitable growth model. The cornerstone of this new direction is the planned divestiture of its North American snack business, a move designed to enhance overall profitability and strengthen the balance sheet.
Transaction Details: A $115 Million Deal
Hain Celestial has entered into a definitive agreement to sell its North American snack operations to Snackruptors Inc., a Canadian manufacturer. The all-cash transaction is valued at $115 million and includes well-known brands such as
This divestment reflects a clear prioritization of earnings quality. While the brands being sold contributed approximately 22% of total revenue in the 2025 fiscal year, their contribution to operating profit (EBITDA) was recently negligible. By shedding these low-margin assets, Hain Celestial aims to cleanse the group’s overall profitability profile.
Key Deal Components:
* Acquirer: Snackruptors Inc.
* Purchase Price: $115 million (cash)
* Brands Included: Terra Chips, Garden of Eatin’, Garden Veggie Snacks
* Primary Goals: Improve consolidated EBITDA margin and reduce debt
Should investors sell immediately? Or is it worth buying Hain Celestial?
Sharpened Focus on Core, High-Margin Segments
Proceeds from the sale are earmarked primarily for debt reduction, a critical step for improving the company’s financial stability. Going forward, Hain Celestial’s North American strategy will center on its tea, yogurt, and baby & toddler nutrition divisions. Management indicates these remaining core segments boast significantly more attractive financial metrics, with gross margins exceeding 30% and double-digit EBITDA margins, vastly outperforming the snack unit.
Market Sentiment and Divergent Analyst Views
The market is assessing this “shrink-to-grow” strategy with a blend of caution and approval. With shares currently trading around €1.00, the stock operates in a volatile environment as investors weigh the long-term benefits of a more profitable portfolio against the immediate reduction in revenue.
Analyst opinions on the stock’s potential are mixed. D.A. Davidson maintains a “Neutral” rating with a $1.50 price target, viewing the divestment as a constructive initial step. In contrast, the Maxim Group remains notably more bullish, reiterating a “Buy” recommendation and a $5.00 price target.
Further details on the company’s financial outlook following the snack business exit are expected shortly. Hain Celestial is scheduled to release its second-quarter results on Monday, February 9, 2026, which will likely include updates on the anticipated pace of debt repayment.
Ad
Hain Celestial Stock: Buy or Sell?! New Hain Celestial Analysis from February 6 delivers the answer:
The latest Hain Celestial figures speak for themselves: Urgent action needed for Hain Celestial investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from February 6.
Hain Celestial: Buy or sell? Read more here...
