TreeHouse Foods agrees to acquire Naturally Fresh

TreeHouse Foods agrees to acquire Naturally Fresh

TreeHouse Foods Inc (NYSE: THS) has entered into a definitive agreement to acquire substantially all of the assets of Naturally Fresh Inc.

Privately owned and based in Atlanta GA, Naturally Fresh produces refrigerated dressings, sauces, marinades, dips, and specialty items in an array of packaging sizes. The products manufactured by the the company will be added to each of TreeHouse’s segments. Naturally Fresh has annual revenues of around $80 million.

TreeHouse has agreed to pay $25 million in cash for the business, subject to an adjustment for working capital. The transaction is expected to have a neutral impact on TreeHouse’s earnings in 2012, but is expected to positively impact 2013 earnings by about $0.05 per share. This transaction is expected to close within 30 days, subject to satisfaction of customary closing conditions, and will be financed through borrowings under the company’s existing $750 million credit facility.

“Naturally Fresh provides retailers with a premium offering in the refrigerated produce section, and the acquisition is the perfect complement to our existing broad array of private-label, shelf-stable dressings, sauces, and salsa,” said Sam K Reed, chairman, president, and chief executive officer. “Additionally, the acquisition will expand our refrigerated manufacturing and packaging capabilities, broaden our distribution footprint, and further develop our presence within the growing segment of fresh and good-for-you foods. Naturally Fresh’s Atlanta facility, coupled with our existing West Coast and Chicago-based refrigerated foods plants, will also allow us to more efficiently service customers from coast to coast.”

Naturally Fresh products are sold under its own brand and private label for foodservice distributors, national chains, and retailers. The company’s facilities include its food processing facility in Atlanta and seven distribution centers nationwide.

TreeHouse is a food manufacturer servicing mainly the retail grocery and foodservice channels.

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish