As part of its ongoing strategic review, Hain Celestial has reached a definitive agreement to sell its International business to global private equity firm Aurelius for an estimated $323 million in cash. Net proceeds from the transaction are expected to range between $305 million and $310 million. Upon closing the transaction, the proceeds would be used to reduce the Hoboken, New Jersey, USA-headquartered company’s debt.
The deal, which is expected to be finalized by the end of this year, is subject to closing conditions, including regulatory approvals and an amendment to Hain Celestial’s credit agreement. The transaction will entail the majority of Hain’s international business operations, including the Linda McCartney Foods frozen products enterprise in the United Kingdom, which boasts a wide variety of meat-free retail and foodservice offerings ranging from vegan Southern-style Chicken Fillets and Smash Burgers to vegetarian Mozzaella Burgers, and Feta, Pea and Mint Crispbakes.
Hain is a leading European platform in healthy and better-for-you food and beverage categories, comprising a raft of market-leading brands and scaled private label capabilities. In addition to the Linda McCartney meat-free assortment, the business operates across five other core categories: Baby & Kids (Ella’s Kitchen), Spreads & Jellies (Hartley’s, Sun-Pat, Robertson’s, Frank Cooper’s, and Rose’s), Soups (New Covent Garden Soup Co., Yorkshire Provender, and Cully & Sully), Non-Dairy Beverages (Joya, Natumi, and Lima), and Desserts.
With seven manufacturing facilities across the UK, Germany and Austria, Hain International supplies leading grocery retailers, discounters, foodservice operators, and B2B customers across Britain, Ireland, and Continental Europe. The enterprise employs approximately 1,500 people and generates annual sales of about €600 million.
“Following acquisitions from Xylem Inc and Grainger Inc last year, Hain International is our latest European carve-out from a US-listed group. I am proud of our teams for turning our Midmarket platform into the partner of choice for transatlantic corporate carve-outs”, said Tristan Nagler, Aurelius partner and head of its London office. “We are excited to become owners of Hain International’s well-known brands and are looking forward to working with the team.”
Hain Celestial’s President and CEO Alison Lewis commented: “Completing the transaction would advance our strategy to simplify our portfolio and enable us to focus resources on further reducing the company’s debt. The resulting North American business would feature leading brands in attractive categories with a more streamlined operating model and greater focus on core growth opportunities.”
Meanwhile, Hain remains in discussions with lenders regarding an amendment to its credit agreement to extend the maturity date beyond December 22, 2026. The transaction with Aurelius is conditioned upon the company securing this amendment and may be terminated by the prospective buyer if it is not obtained within 30 days of signing.
