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Dive Briefing:
- Hain Celestial has sold its ParmCrisps brand to an independent snack maker for an undisclosed amount. It will also add Our Home. Palmcrisp' Manufacturing facility in York, Pennsylvania.
- Hain said the deal will focus on a better portfolio and streamline its supply chain, leading to greater operating efficiency and margin expansion. Proceeds from the sale of the Cheese Crisp and Snack Mix brands will be used to pay down debt.
- Our Home has been building its snack portfolio through acquisitions. Last week, it acquired the Pop Secret popcorn brand from Campbell Soup.
Dive Insight:
In 2021, Hain acquired ParmCrisps and cookie brand Thinsters as part of a $259 million deal for That's How We Roll.
Three years later, the organic and natural products manufacturer sold both snack products it had added through the deal. In April, frozen Icey Beverage company J&J Snack Foods has acquired Thinsters.
That's How We Roll The deal was challenging for Hain. In early 2023, the company wrote down more than half of the acquisition price due to significant distribution losses and a weakening keto diet category.
The sale of ParmCrisps represents Hain's latest effort to accelerate growth in five key segments: snacks, baby and kids foods, beverages, meal prep and personal care. The portfolio of better-for-you brands includes Garden Veggie Snacks, Terra chips, Garden of Eatin' snacks and Celestial Seasonings teas.
“The sale of ParmCrisps allows us to continue to prioritize the market reach and category scale of our core better-for-you brands,” Wendy Davidson, Hain Celestial’s CEO, said in a statement. “This transaction further streamlines our better-for-you portfolio and streamlines our supply chain for operational efficiency and margin expansion.”
Last week, Hain reported fourth-quarter net sales of $419 million, down 6% from the year-ago period. The company still reported meaningful margin improvements and narrowed its net loss.
Buying for my home ParmCrisps is the latest in a series of acquisitions by the company to expand its portfolio of snack products.
In addition to PopSecret, I also purchased: In January, it acquired Good Health and RW Garcia snacks from Utz Brands for $182.5 million. Cheese snack provided Sonoma 4 months after creamery. Also owns Our Home Pop chips, ParmCrisps said It will “significantly expand” its existing platforms and influence nationwide.
“We are thrilled to have the ParmCrisps manufacturing family join our team,” Our Home CEO Aaron Greenwald said in a statement. “The combination of Sonoma Creamery and ParmCrisps talent will facilitate tremendous IP and knowledge sharing, benefiting both brands, our retail partners, and most importantly, our consumers.”
that Palmcrisp The acquisition strengthens Our Home’s Cheese Crisp portfolio and combines complementary manufacturing, innovation and distribution capabilities, the company said.
