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Item 1.01 Entry into a Material Definitive Agreement.
On September 12, 2026, The Hain Celestial Group, Inc. (“ Hain Celestial ” or the “ Company ”), for itself and through certain of its wholly-owned subsidiaries (collectively, the “ Sellers ”), entered into a Share Purchase Agreement (the “ Purchase Agreement ”) with entities (the “ Purchasers ”) affiliated with global private equity firm AURELIUS, pursuant to which, subject to the terms and conditions set forth therein, the Purchasers have agreed to acquire from the Sellers (the “ International Business Transaction ”) the entities (the “ Target Entities ”) that operate Hain Celestial’s International business in the United Kingdom, Ireland and Europe, including Ella’s Kitchen ® baby and kids foods, Joya ® and Natumi ® plant-based beverages, Hartley’s ® jelly, as well as Cully & Sully ® , Yorkshire Provender ® , and New Covent Garden ® soups (collectively, the “ International Business ”).
The gross sale price for the International Business Transaction is £233.0 million, plus an additional locked box ticker amount expected to be approximately £5.5 million (depending on the date on which closing occurs) to compensate the Sellers for profits of the International Business during a specified period, for an estimated aggregate gross sale price of £238.5 million, or approximately $323.2 million. The aggregate net cash proceeds to be realized, after transaction expenses and taxes and including cash to be distributed from the International Business prior to closing, are expected to be between £225.1 million and £228.8 million, or between approximately $305.0 million and $310.0 million. Upon closing of the International Business Transaction, the Company would use the net proceeds to reduce the Company’s indebtedness. The foregoing U.S. Dollar figures are based on current foreign exchange rates and are subject to change based on foreign exchange rates in effect at the time the International Business Transaction closes.
Consummation of the International Business Transaction is subject to the following closing conditions: (1) customary regulatory consents, approvals or non-objections from regulatory authorities in the United Kingdom, Austria, Ireland, Germany and Belgium, and (2) by October 12, 2026, the Company and its lenders entering into an amendment of the Company’s credit agreement, which currently has a maturity date of December 22, 2026, to extend such maturity date by not less than nine months. If the credit agreement amendment is not entered into by October 12, 2026, the Purchasers may terminate the Purchase Agreement.
The Company remains in active discussions with its lenders to reach an agreement on an amendment of the Company’s credit agreement that would satisfy the closing condition for the International Business Transaction. While there can be no assurance that a credit agreement amendment will be obtained, the Company’s Board of Directors believes that extending the maturity date and completing the International Business Transaction would be in the best interests of the Company and its stakeholders.
Subject to the satisfaction of the closing conditions, the International Business Transaction is currently expected to close in the Company’s fiscal second quarter ending December 31, 2026.
The Purchase Agreement provides for customary covenants, including covenants requiring that the Sellers operate the International Business in the ordinary course and refrain from taking certain actions without the Purchasers’ consent during the period from the date of the Purchase Agreement to the closing of the International Business Transaction. The Purchase Agreement also contains customary warranties and undertakings of the Sellers, including warranties relating to the operation of the International Business, in each case subject to various materiality and other customary qualifiers. Additionally, the Purchasers’ recourse with respect to certain of the Sellers’ warranties is limited to recovery against a third-party warranty and indemnity insurance policy procured by the Purchasers. The Purchase Agreement also contains customary warranties and undertakings of the Purchasers, subject to materiality and other customary qualifiers.
The Target Entities to be sold in the International Business Transaction are:
________________________________ *This press release includes certain non-GAAP financial measures, which are intended to supplement, not substitute for, comparable GAAP financial measures. Reconciliations of non-GAAP financial measures to GAAP financial measures and other non-GAAP financial calculations are provided in the tables included in this press release.
Summary of Fiscal Year 2026 Results Compared to the Prior Year
• Net sales were $1,353 million, down 13% year-over-year.
o Organic net sales decreased 3% compared to the prior year.
▪ The decrease in organic net sales was comprised of a 3-point decrease in volume/mix, partially offset by a 1-point increase in pricing.
• Gross profit margin was 20.1%, a 130-basis point decrease from the prior year.
o Adjusted gross profit margin was 20.5%, a 100-basis point decrease from the prior year.
• Net loss was $305 million, compared to a net loss of $531 million in the prior year.
o Adjusted net loss was $16 million, compared to adjusted net income of $8 million in the prior year.
• Adjusted EBITDA was $89 million, compared to $114 million in the prior year.
• Loss per diluted share was $3.36, compared to a loss per diluted share of $5.89 in the prior year.
o Adjusted loss per diluted share was $0.17, compared to adjusted earnings per diluted share of $0.09 in the prior year.
Cash Flow and Balance Sheet Highlights
• Net cash provided by operating activities was $11 million in the fiscal fourth quarter, compared to net cash used in operating activities of $3 million in the prior year period; net cash provided by operating activities was $78 million in fiscal 2026 compared to $22 million in the prior year.
• Free cash flow was $7 million in the fiscal fourth quarter, compared to an outflow of $9 million in the prior year period; free cash flow was $58 million in fiscal 2026 compared to an outflow of $3 million in the prior year.
• Total debt was $558 million at the end of the fiscal fourth quarter, down from $705 million at the beginning of the fiscal year.
• Net debt was $500 million at the end of the fiscal fourth quarter, compared to $650 million at the beginning of the fiscal year.
• The company ended the fiscal fourth quarter with a net secured leverage ratio of 4.5x as calculated under our credit agreement.
SEGMENT HIGHLIGHTS The company operates under two reportable segments: North America and International.
EX-99.2 hain-ex99_2.htm EX-99.2 EX-99.2 Exhibit 99.2
HAIN CELESTIAL ENTERS INTO DEFINITIVE AGREEMENT TO SELL INTERNATIONAL BUSINESS Sale would simplify Hain’s portfolio and create a focused North American business;
Net proceeds from the transaction would be used to reduce debt HOBOKEN, New Jersey, Sept. 14, 2026 — As part of its ongoing strategic review, Hain Celestial announced today it has reached a definitive agreement to sell its International business to global private equity firm AURELIUS for an estimated $323 million in cash. Net proceeds from the transaction are expected to range between $305 million and $310 million. Upon closing of the transaction, the proceeds would be used to reduce the Company’s debt. The agreement reflects the Board of Directors’ continued work to advance the Company’s strategic review, evaluate available alternatives and pursue paths designed to maximize value for all stakeholders.
The sale will include the majority of Hain’s International business operations and is inclusive of brands such as Ella's Kitchen® baby and kids foods, Joya® and Natumi® plant-based beverages, Hartley’s® jelly, as well as Linda McCartney® Foods, Cully & Sully®, Yorkshire Provender®, and New Covent Garden® soups, among others.
Alison Lewis, Hain Celestial’s President and CEO, said, “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. 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.”
Filing figures are from this filing. Earlier figures are from past filings.