Hain Celestial divests Arrowhead Mills and SunSpire brands

US-based food company Hain Celestial has completed the divestment of the Arrowhead Mills and SunSpire brands to Hometown Food for $15m.

Hometown Food is a portfolio company of Brynwood Partners VII and Brynwood Partners VIII.

As per the terms of the deal, Hometown Food acquired Arrowhead Mills manufacturing facility in Hereford, Texas, and its employees.

Hain Celestial president and CEO Mark Schiller said: “We are pleased to complete the strategic divestitures of the Arrowhead Mills and SunSpire brands demonstrating the consistent execution of our stated transformational plan to reduce complexity and simplify the brand portfolio.

“We believe the Arrowhead Mills and SunSpire brands will thrive under new ownership as we focus our future initiatives and investments on areas of our business that better leverage our core competencies to improve our margins, profitability and cash flow generation.”

Established in 1960, the Arrowhead Mills brand has been producing organic products primarily in the baking and breakfast categories.

SunSpire makes wholesome chocolates, which are claimed to have been produced using richest cocoa beans.

The brand’s portfolio includes baking chips and chocolate bars produced using simple ingredients and are free from refined sugars, hydrogenated oils, trans-fats, preservatives and artificial flavours.

Brynwood Partners chairman and CEO Henk Hartong said: “Arrowhead Mills and SunSpire were pioneers in the organic, non-GMO ingredients space and we are excited to add these tremendous brands to our portfolio.

“This acquisition strengthens our industry position by adding improved capabilities in the better-for-you space that we plan to extend into our other categories.”

In August, Hain Celestial completed the sale of its premium basmati and speciality rice brand Tilda to Ebro Foods for $342m in an all-cash transaction.

Hain Celestial will use the proceeds to reduce its debts. Distribution alternatives for the remaining amount are being considered to maximise value to its shareholders.