Private equity firm Brynwood Partners said Monday it has acquired the Arrowhead Mills and SunSpire brands from The Hain Celestial Group, Inc. for $15 million.
Greenwich, Conn.-based Brynwood did not disclose whether it was a cash or stock purchase, but said the deal is subject to post-closing adjustments.
The acquisition includes Arrowhead’s facility in Hereford, Texas, which was certified organic by Quality Assurance International (QAI) in August 2013.
Arrowhead manufactures baking and breakfast ingredients and products and SunSpire manufactures organic, fair trade baking chocolate and chocolate candy.
The operations of the Arrowhead and SunSpire brands will fold into Brynwood’s Chicago-based Hometown Food Company business, which was formed last year by Brynwood to acquire a portfolio of brands from The J.M. Smucker Company, including the Pillsbury and Hungry Jack brands.
“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,” said Henk Hartong, Brynwood CEO. “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.”
Hain said the divestiture will have a negligible impact on its “ongoing EBITDA.”
“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,” said Hain CEO Mark Schiller.