J&J Snack Foods Corp. has completed the acquisition of the Thinsters cookie brand from The Hain Celestial Group, Inc. The transaction’s terms were not made public.
Thinsters are slender, bite-sized cookies crafted with ingredients known for their purity. Originally launched in 2014 under the name Mrs. Thinsters, the brand became part of Clearlake Capital Group, LP’s acquisition of That’s How We Roll, LLC in 2016. In 2019, it was rebranded as Thinsters. Subsequently, in a deal totaling $259 million, the Hain Celestial Group acquired Thinsters along with Parmcrisps two years later.
“This acquisition seamlessly aligns with our extensive range of cookies and baked goods,” stated Dan Fachner, President and CEO of J&J Snack Foods. “Thinsters’ commitment to utilizing top-notch, wholesome ingredients perfectly aligns with the preferences of our expanding customer base. We eagerly anticipate utilizing our expertise to broaden distribution channels and introduce Thinsters cookies to a broader audience.”
J&J Snack Foods also boasts ownership of other snack brands such as SuperPretzel, Hola Churros, and Funnel Cake.
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Wendy Davidson, President and CEO of Hain Celestial, expressed, “By divesting Thinsters, we enhance the efficiency of our supply chain network, allowing us to concentrate our efforts on expanding the reach and scale of our core better-for-you brands within our targeted categories. We are pleased to have reached this agreement with J&J Snack Foods and have full confidence that the business will flourish under their leadership.”
The acquisition of Thinsters and Parmcrisps did not yield favorable results for The Hain Celestial Group. Just over a year post-acquisition, the company reported a pre-tax, non-cash impairment charge of $156 million related to the brands, citing a substantial decline in distribution, according to the company’s statement.
The initial premise, in my opinion, was that the risk associated with channel concentration would be surpassed by the growth of channels. Davidson made this comment during a May 9, 2023, conference call regarding the impairment charge. “But it turned out that these two elements were actually in opposition.” “Therefore, what we are witnessing currently is a result of acknowledging the current state of the brand.”
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