Welcome to SJGLE.com! |Register for free|log in
Welcome to SJGLE.com! |Register for free|log in
Related Searches: Tea Vitamin Nutrients Ingredients paper cup packing
Significant moves in the global snacking sector this week include an acquisition by Hain Celestial Group of That’s How We Roll, the producer and marketer of gluten-free ParmCrisps and Thinsters.
In other developments, Abu Dhabi-headquartered Agthia Group – one of the United Arab Emirates (UAE) region’s largest F&B companies – completed its strategic acquisition of a 100% stake in BMB Group, a healthy snacks and food company with a growing global footprint.
The healthy snacking space has been brimming with innovation over this last year, prompted by consumer demand for cleaner and more natural offerings and propelled by a growing popularity in snacking in general as people stay indoors due to lockdown measures as well as increased working from home.
According to Innova Market Insights, concerns over high preservatives and artificial coloring in certain versions are prominent drivers in this space.
The market researcher underscores that the influx of vegan-friendly formulas, functional cranberry delights, upcycled fruit snacks, organic ranges, luxurious choices, beverages-inspired tastes (caffe latte, Matcha tea), and wine-infused preparations are supporting the NPD.
That’s How We Rolls’ first highlighted offering, ParmCrisps, are high-protein, low carb cheese crisps and snack mixes (Credit: That’s How We Roll). Hain Celestial acquires That’s How We Roll
Hain Celestial’s acquisition of That’s How We Roll deepens Hain’s position in the snacking category, with a total purchase price of approximately US$259 million, subject to an adjustment for working capital, and will be financed with borrowings under Hain’s revolving credit facility.
That’s How We Roll generated approximately US$108 million of net sales for the 12 months ended September 30, 2021, and is expected to generate mid-teens net sales growth next year.
“We have been proud to sponsor ParmCrisps and Thinsters to execute on a vision of scaling a better-for-you snack platform to meet the demands of today’s health conscious, informed consumers,” say José Feliciano, co-founder and managing partner of Clearlake Capital Group.
“Given our previous experience with Hain Celestial, who acquired our former portfolio company World Gourmet / Sensible Portions in 2010, we believe ParmCrisps and Thinsters have found a perfect home, and we look forward to the brands’ continued success under Hain.”
That’s How We Rolls’ first highlighted offering, ParmCrisps, are high-protein, low-carb cheese crisps and snack mixes. Its second core product, Thinsters, are crispy thin cookies made from high-quality, non-GMO ingredients. All products are available in a variety of flavors.
“ParmCrisps and Thinsters are optimally positioned to benefit from consumer preferences for clean-label and high-protein snacks,” stresses Mark Schiller, president and CEO of Hain Celestial.
“We believe the wealth of experience and resources of the team at Hain will allow us to reach even more consumers with our simple and delicious, better-for-you snacks,” adds Sammy Kestenbaum, CEO of That’s How We Roll.
The acquisition is expected to be slightly accretive to Hain’s Adjusted EBITDA in fiscal year 2022 after making investments in the target brands and accretive in fiscal year 2023 with margins in line with Hain’s existing snacks business.
The acquisition is subject to customary closing conditions, including regulatory approvals, and is expected to close by the end of calendar year 2021.
Agthia Group acquires BMB Group
Agthia Group’s acquisition of BMB Group bolsters its position in the fast-growing snacking and healthy food segment, building on its acquisition of date company Al Foah and Al Faysal bakery in January.
Thinsters by That’s How We Roll (Credit: Thinsters).For nearly 15 years, BMB has been marketing its confectionery and healthy food products with over 2,000 SKUs in more than 23 countries worldwide. The list includes UAE, Saudi Arabia and the US, wher BMB supplies some of the biggest retailers such as Walmart, Sam’s Club and Costco.
“This transaction supports our 2025 growth strategy focused on the acquisition, integration and scaling of new businesses in value-add categories,” comments Khalifa Sultan Al Suwaidi, chairman of Agthia Group.
“The acquisition of BMB will create immediate value accretion for our shareholders, with significant growth prospects across Agthia’s product portfolio, geographical footprint, human capital and R&D capabilities.”
BMB manufactures and distributes a wide variety of chocolate, Mediterranean sweets, bakery ingredients and healthy snacks and food for its own brands and partners. Its portfolio includes popular confectionery and healthy food brands such as Asateer, Al Qamar, Freakin’ Healthy and Benoit.
“Together we will take these brands to new markets, as well as utilize BMB’s distribution network to widen the reach of Agthia’s product portfolio in exciting markets such as the US and Canada,” remarks Alan Smith, CEO of Agthia Group.
“In the longer term, this acquisition will see us at the forefront of new consumer trends. With our shared passion for innovation, BMB’s experience and our strong balance sheet, we will become market leaders in healthy snacking and venture into exciting verticals such as plant-based foods.”
Headquartered in Dubai, UAE, BMB started in 2007 as a small warehouse in Sharjah. Today it has two manufacturing facilities stretching over a combined total of 150,000 square feet.
According to Innova Market Insights, the snack nuts and seeds subcategory is ranked first for snacks category launches across the Middle East region.
In this market, “no additives/preservatives” was the leading positioning over the April 2020 to September 2021 period.
E-newsletter
Tags