OAKBROOK, IL
TreeHouse Foods Inc is planning to acquire Canadian food company Protenergy for about $150 million, according to the Pittsburgh Post-Gazette.
Illinois-based TreeHouse Foods, which makes private label soups, announced that it will be buying Protenergy Natural Foods, including its headquarters in Toronto and a second plant in Cambridge, MD. Protenergy employs around 300 people and reported sales of about $118 million in 2013.
"The acquisition of Protenergy is expected to expand our existing packaging capabilities and enables us to offer customers a full range of soup products, both wet and dry," Sam K. Reed, Chairman, President and CEO of TreeHouse Foods, said in the official announcement.
"Our plans are to continue that remarkable growth along two parallel paths," Mr. Reed said. "First, we believe that other segments of the soup, broth, gravy and sauce categories will follow a growth trajectory of broth in the cartons. Aseptic packaging has transformed broth from a private label laggard to a customer brand growth engine."
Reed believes this deal will result in cost savings, saying that it will take about a year before the synergies will fully take effect. By next year, he said, some sourcing savings may be found as well as distribution synergies.
In addition to the announcement, TreeHouse also said that its net sales in Q1 were up 14.6% from the same period a year ago. Earnings are expected in the range of 77-80 cents per share, and full quarterly results will be released in May.
TreeHouse Foods Inc
Protenergy Natural Foods
