The products manufactured by the Naturally Fresh, business will be added to each of TreeHouse’s segments. Naturally Fresh has annual revenues of approximately $80m.
TreeHouse has agreed to pay $25m in cash for the business, subject to an adjustment for working capital. The transaction is expected to have a neutral impact on TreeHouse’s earnings in 2012, but is expected to positively impact 2013 earnings by approximately $0.05 per share.
The transaction is expected to close within 30 days, subject to satisfaction of customary closing conditions, and will be financed through borrowings under the Company’s existing $750m credit facility.
Sam Reed, chairman, president and CEO, said: “Naturally Fresh provides retailers with a premium offering in the refrigerated produce section, and the acquisition is the perfect complement to our existing broad array of private label shelf stable dressings, sauces and salsa.
“Additionally, the acquisition will expand our refrigerated manufacturing and packaging capabilities, broaden our distribution footprint and further develop our presence within the growing segment of fresh and good for you foods. Naturally Fresh’s Atlanta facility, coupled with our existing West Coast and Chicago based refrigerated foods plants, will also allow us to more efficiently service customers from coast to coast.”
Source: TreeHouse Foods
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