Hain Celestial has reached an agreement to sell its international division to investment firm Aurelius for $323m (£240m) as the struggling US food group continues turnaround efforts.
The all-cash deal includes a portfolio of household brands such as Ella’s Kitchen, Linda McCartney, New Covent Garden and Sun-Pat.
Hain expects to clear between $305m and $310m in net proceeds from the deal and will use the cash to reduce group debt.
“Completing the transaction announced today would advance our strategy to simplify our portfolio and enable us to focus our resources on further reducing the company’s debt,” CEO Alison Lewis said.
“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.”
The transaction with Aurelius is conditional on Hain securing an amendment to extend the maturity date on a credit agreement with a lender to beyond 22 December 2026.
Aurelius is able to terminate the agreement if the amendment is not obtained within 30 days of the deal being signed.
Hain said that while there was no assurance an amendment would be obtained, the board believed extending the maturity date and completing the transaction would be in the best interests of the company and its stakeholders.
“I want to recognize the incredible people behind our international brands and business,” Lewis added. “Their dedication, expertise and commitment over many years is greatly appreciated. They have built remarkable brands, which we are confident will thrive under the new ownership.”
New future
Hain has been working with bankers at Goldman Sachs on the sale of the international division, as revealed by The Grocer earlier this year. Ambient food group Princes and UK PE firm Endless were among the bidders, alongside Aurelius, in the final round of the auction.
Hain International includes the Hain Daniels UK business, which accounts for most of the division’s $600m in annual sales. The division employs 1,500 staff and operates seven factories in the UK, Germany and Austria.
Its brands span six core categories in baby, spreads, soups, meat-free and dairy alternatives, including Ella’s Kitchen, New Covent Garden, Yorkshire Provender, Cully & Sully, Hartley’s, Robertson’s, Frank Cooper’s, Rose’s, Sun-Pat and Linda McCartney’s, among others. It also operates an own-label plant-based milk business in Europe.
Aurelius said it would build upon the division’s leading market positions, accelerate product innovation, expand private label partnerships and optimise operational efficiencies across the manufacturing base and supply chain.
Tristan Nagler, Aurelius partner and head of the London office, added: “We are excited to become owners of Hain International’s well-known brands and looking forward to working with the team.”
Aurelius is headquartered in Munich and London, specialising in offering private equity and debt. Past investments have included The Body Shop, The Original Factory and Bodycare. It also agreed a £35m rescue loan in May with TG Jones (formerly WH Smith).
Hain Celestial latest results
Separately, Hain today reported a 28% slump in fourth-quarter revenues to $263m, driven by the divestment of its North American snacks business in February. Organic sales fell 2% year on year in the three months to 30 June 2026. Revenues for the year decreased 13% to $1.4bn.
Organic sales at the international division slipped by 4% in the year as the company struggled in the baby & kids category and in meal prep. It registered an adjusted EBITDA of $63m, which was down 26% year on year as a result of cost inflation and lower volumes.
Hain made an annual loss of $305m overall, down from a $531m deficit in the prior year. Adjusted EBITDA losses came in at $89m.
Total debt at the financial year end sat at $558m, down from $705m at the beginning of the period.
The group has struggled to make progress with a drawn-out turnaround over the past three years, which included a new strategy unveiled in 2023. However, sales continued to decline and losses increased, leading to former CEO Wendy Davidson leaving the business in 2025.
Hain’s share price in New York has almost completely collapsed in the past few years and the whole group has a market cap of just $56m.
“Fiscal 2026 was a pivotal year for Hain,” Lewis said today. “We simplified our portfolio, reduced debt, significantly improved free cashflow and exited the year with improving momentum across the business.
“Our fourth quarter results reflected encouraging sequential improvement, including organic net sales growth in North America, gross margin and adjusted EBITDA margin expansion, and continued progress on productivity and cost discipline initiatives.
“Assuming we successfully complete the transaction announced today to sell our international business and that we reach an agreement with our lenders to extend of our December debt maturity, we would expect to become a more focused North American company with leading brands in attractive categories and a streamlined operating model.”
Hain’s remaining portfolio will include Celestial Seasonings teas, The Greek Gods yogurt and Earth’s Best Organic across its flagship categories of tea, yogurt and baby & kids foods. The portfolio also includes Spectrum Organic cooking oils, MaraNatha nut butters and Imagine broths.
Hain was advised on the international sale by Goldmand Sachs and DLA Piper’s London team, while Aurelius worked with Houlihan Lokey, Freshfields and Shoosmiths, A&M, BDO, Food Strategy Associates and Haver & Mailänder.