Cully & Sully parent Hain Celestial Group has announced that it has completed the divestiture of its North American non-dairy beverage brands Dream and Westsoy to SunOpta Inc. for $33 million.
The deal is subject to customary post-closing adjustments, the company added.
President and CEO of the company, Mark L Schiller, said that the transaction is part of the company's ongoing brand portfolio transformation.
"We considered this business to be non-core within our North American business, and as such, this divestiture fully aligns with both our portfolio simplification process and prioritisation efforts of our Get Bigger brands," he added.
'Growth Profile'
Schiller also added the deal improves the company's growth profile without impacting the profit margin of the remaining Hain Celestial business.
It will also provide the company with increased confidence in its ability to continue to enhance shareholder returns over the long term.
Hain Celestial is an organic and natural products company operating in North America, Europe, Asia and the Middle East.
Its product portfolio includes, among others, Ella's Kitchen, Rose's cordial, and Hartley's jam.
In 2019, Hain Celestial posted a 6% net sales decrease in its full year, to $2.3 billion (€2.08 billion), with net sales down 4% on a constant currency basis.
In terms of divisions, in the US, net sales were down 7% over the full year, to $1.01 billion, while Hain Celestial United Kingdom saw sales down 6% to $886 million. Rest of World net sales were down 6% to $408 million.
© 2021 European Supermarket Magazine. Article by Dayeeta Das. For more A-Brands news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.
