TreeHouse Foods has officially sold one of its largest divisions. The company announced this week that it entered into a definitive agreement with Atlas Holdings, which owns and operates 19 manufacturing and distribution businesses worldwide. TreeHouse Foods’ Snacks Division is one of the largest manufacturers and distributors of private label healthy snacks in North America and is expected to hit sales expectations as high as $670 million in 2019.
"The sale of the Snacks Division is a key step in optimizing TreeHouse's overall product portfolio. It is the culmination of TreeHouse's strategic review of its Snacks business," said Steve Oakland, CEO and President of TreeHouse Foods. "This transaction allows the Snacks Division to unlock its potential and serve its customers even better under Atlas' ownership. We are grateful for the hard work put forth by the Snacks team during these last several years."
The Snacks Division operates three plants, located in Robersonville, North Carolina; El Paso, Texas; and Dothan, Alabama—all of which are included in the transaction. According to a press release, both Atlas and TreeHouse are committed to a smooth transition for employees, customers, and consumers.
"This Snacks business will be a welcome addition to the Atlas family of manufacturing and distribution companies," said Michael Sher, Partner of Atlas Holdings. "Customers are consistently choosing private label brands, and this business is a premier manufacturer with unique growth potential. We're excited to partner with this team to deliver the finest, healthy, private label snacks in the industry."
The transaction is expected to close in the third quarter of 2019, with the net proceeds planned to be used to pay TreeHouse’s debt.
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