An acquisition is in the works for the private label packaged foods and beverages company TreeHouse Foods. Recently, the company announced it has signed a definitive agreement to acquire the majority of the U.S. branded pasta portfolio of Riviana Foods, a subsidiary of Ebro, for $242.5 million in cash. As part of the deal, TreeHouse Foods will now acquire well-known regional brands, including Prince (Northeast), Creamette (Midwest), and American Beauty (West) with a generated revenue of approximately $200 million for the twelve-month period ended June 30, 2020.
“The acquisition of Ebro’s well-known regional pasta brands further strengthens our portfolio and expands our scale to better serve our national and regional customers,” said Steve Oakland, CEO and President of TreeHouse Foods. “Our existing private label and regional brand pasta business will be a natural complement to the acquired brands and will enable us to further optimize our production network, improve capacity utilization, and deliver greater profitability and free cash flow.”
According to the press release, the acquisition also includes the following regional brands: Skinner, No Yolks, San Giorgio, Light ’n Fluffy, Mrs. Weiss’, Wacky Mac, P&R Procino-Rossi, and New Mill. The company will also be acquiring the St. Louis, Missouri, manufacturing facility, which employs approximately 90 people. As noted in the press release, the acquisition does not include the Ronzoni national brand or its Winchester, Virginia, and Fresno, California, plants.
“The work we have done over the past several years to strengthen our operating platform and realign our businesses into two distinct segments has positioned us well to execute this transaction and integrate the pasta business,” Oakland continued. “We are confident this accretive acquisition, along with the significant progress we have made in generating free cash flow this year, will enhance our ability to drive shareholder value.”
TreeHouse’s latest transaction is subject to Hart-Scott Rodino review and other customary closing conditions and is expected to close in the fourth quarter of 2020.
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