Aterian Investment Partners III, L.P., a private equity company that focuses on turning around middle market companies, has agreed to buy the Hain Pure Protein Corp. from the Hain Celestial Group, Inc. for $80 million.
The Hain Pure Protein business includes such brands as Empire Kosher and FreeBird. The transaction is expected to close before June 30.
“We are pleased to have entered into an agreement for the sale of our remaining Hain Pure Protein businesses,” says Mark L. Schiller, president and chief executive officer of Hain Celestial. “This divestiture is another step forward in simplifying our organization aligned with our transformational strategic plan as we aggressively pursue margin enhancing initiatives to fuel long-term sustainable growth and profitability.
“We expect the sale of Hain Pure Protein to also help improve our balance sheet as we generate cash from the sale with which we plan to use in part to pay down debt. We believe these non-core brands will generate better results under the ownership of an organization that is focused on the protein category.”
This is the second divestment the Hain Celestial Group has made this week. On May 6 the company said it has sold its WestSoy plant-based food business to Keystone Natural Holdings, a portfolio company of Keystone Capital, a private equity firm. Keystone Natural Holdings manufactures and sells plant-based protein products, including tofu, meatless veggie burgers and other soy-based and vegetarian items, into the retail and food service channels under the Nature Soy, VeggieLand, Franklin Farms, Jens & Marie and Superior Tofu brands.