TreeHouse Foods, Inc. announced that it has completed its acquisition of Harris Tea for approximately $205 million.
"The acquisition of Harris Tea is a good use of our balance sheet strength, bringing a fast-growing, margin-accretive business into TreeHouse Foods, and giving us an immediate leadership position in private label tea," said TreeHouse Foods Chairman, CEO, and President Steve Oakland. "Harris Tea's capabilities in tea sourcing, blending and packing, as well as its scale, industry expertise, and customer relationships, fit our strategy well."
As stated in the original press release, TreeHouse Foods funded the acquisition of Harris Tea primarily with cash on hand and expects the acquisition to be accretive to revenue and profitability in 2025. As previously disclosed, the purchase price equals roughly 8.5x trailing-twelve-month adjusted EBITDA, or 6.5x net of synergies and the net present value of future tax benefits.
TreeHouse Foods is reiterating its 2024 full-year guidance, including the expectation of sequential improvement in volume growth and profit margin in the fourth quarter.
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