Dive Brief:
- Hain Celestial sold its ParmCrisps brand to independent snacks maker for an undisclosed amount. Our Home will also add ParmCrisps’ production facility in York, Pennsylvania.
- Hain said the transaction focuses its better-for-you portfolio and streamlines its supply chain to drive greater operational efficiency and margin expansion. Proceeds from the sale of the cheese crisp and snack mix brand will be used to pay down debt.
- Our Home has been building its snacking portfolio through acquisitions. Last week, it purchased Pop Secret popcorn brand from Campbell Soup.
Dive Insight:
Three years later, the organic and natural products manufacturer sold both of the snack products it added through the transaction. In April, frozen Icee beverage owner J&J Snack Foods purchased Thinsters.
The That’s How We Roll deal proved challenging for Hain. In early 2023, the company wrote down more than half of the acquisition due to a significant loss of distribution and softening in the keto diet category.
The sale of ParmCrisps represents Hain’s latest effort to accelerate growth in five key areas: snacks, baby and kids food, beverages, meal prep, and personal care. The better-for-you brand’s portfolio includes Garden Veggie Snacks, Terra chips, Garden of Eatin’ snacks and Celestial Seasonings teas.
“By divesting ParmCrisps, we can continue to prioritize driving 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 simplifies our better-for-you portfolio and streamlines our supply chain for operational efficiency and margin expansion.”
Last week, Hain said net sales during its fourth quarter were $419 million, a decline of 6% from the same period a year earlier. The company still posted meaningful improvements in margins and reduced its net loss.
For Our Home, the purchase of ParmCrisps is the latest in a string of acquisitions to expand its snacking portfolio.
In addition to PopSecret, it purchased Good Health and R.W. Garcia snacks for $182.5 million from Utz Brands in January and cheese snack offering Sonoma Creamery four months later. Our Home, which also owns Popchips, said ParmCrisps will “significantly scale” its existing platform and footprint across the country.
“We are very excited to have the ParmCrisps manufacturing family join our team,” Aaron Greenwald, Our Home’s CEO, said in a statement. “The combination of our Sonoma Creamery and ParmCrisps talent will drive tremendous IP and knowledge sharing, benefitting both brands, our retail partners and most importantly, our consumers.”
The ParmCrisps acquisition bolsters Our Home’s cheese crisps portfolio and combines complementary manufacturing, innovation and distribution capabilities, the company said.
