In June we reported that TreeHouse Foods had acquired a coffee facility from Farmer Brothers Company. It seems the supplier is continuing to make strategic transactions, as TreeHouse announced this week that it entered into a definitive agreement to sell its Lakeville, Minnesota, manufacturing facility and snack bars business to John B. Sanfilippo & Son for approximately $63 million in cash.
"The sale of our Lakeville facility and snack bars business is another example of our strategy in action to be a focused private label leader in high-growth and high-margin categories," said Steve Oakland, Chairman, Chief Executive Officer, and President of TreeHouse Foods. "Importantly, we believe the business and its talented colleagues will be well positioned under John B. Sanfilippo & Son's ownership. We remain focused on deploying our capital in a manner that supports our long-term growth targets and enhances value creation for our shareholders."
The manufacturing facility being sold has been part of the TreeHouse Foods network since its acquisition of the Private Brands business in 2016. The facility produces a range of private-label snack bar products including fruit and grain, chewy, crunchy, and protein bars.
According to a press release, the snack bars business was not expected to contribute positive adjusted EBITDA in fiscal year 2023. The transaction is subject to customary closing conditions and is expected to close within the next 30 days.
Following the close of this transaction, the existing private-label snack bars business, customer relationships, and Lakeville-based employees will transition to John B. Sanfilippo & Son. Both companies are committed to creating a smooth transition for employees, customers, and consumers.
Stay tuned as TreeHouse continues to make moves such as this one.