The Cains’ product portfolio offers retail and foodservice customers a wide array of packaging sizes, sold under private label store brands and the Cains, Naturally Delicious and Olde Cape Cod brands.
TreeHouse has agreed to pay $35m in cash for the business, subject to adjustments for working capital and taxes. The transaction is expected to have a neutral impact on TreeHouse’s earnings in 2013, but is expected to positively impact 2014 earnings by approximately $0.05 per share.
The transaction is expected to close within 30 days, subject to the satisfaction of customary closing conditions, and will be financed through borrowings under TreeHouse’s existing $750m credit facility.
“Cains has a nearly 100-year tradition of manufacturing high quality products, and this is a very good business with experienced management and a dedicated team of employees,” said Sam K Reed, chairman, president and CEO of TreeHouse Foods. “Cains will be a great fit within the TreeHouse family, rounding out our industry leading assortment of private label pourable and spoonable dressings.”
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