The proof is in the pasta when it comes to the close of TreeHouse Foods’ most recent acquisition. The company has finished its $242.5 million cash purchase of the majority of Ebro's Riviana Foods U.S. branded pasta business.
"I want to welcome our newest members of the pasta team to TreeHouse," Steve Oakland, Chief Executive Officer and President of TreeHouse Foods, commented in a press release. "This acquisition represents a wonderful opportunity to not only strengthen our portfolio, but to bring together strong industry talent which will enable us to better serve our customers and to deliver greater value to our shareholders."
In addition to having acquired Ebro's St. Louis manufacturing facility, which employs approximately 90 people, the deal included the following regional pasta brands:
Because the acquisition was structured as an asset purchase, TreeHouse expects to realize approximately $40 million in cash tax benefits on a net present value basis.
The company said that normalized revenue for the acquired pasta business is expected to be between $170 and $180 million, and normalized EBITDA is projected to be between $25 and $30 million, pre-synergies.
As we continue to eye how this latest expansion in its portfolio will shape TreeHouse’s strategy, Deli Market News will bring you the latest.