TreeHouse Foods has agreed to acquire the majority of Ebro subsidiary Riviana Foods’ US branded pasta portfolio for $242.5 million in cash.
The acquisition includes a number of regional brands: Skinner, No Yolks, American Beauty, Creamette, San Giorgio, Prince, Light ‘n Fluffy, Mrs. Weiss’, Wacky Mac, P&R Procino-Rossi and New Mill.
In addition, Riviana Foods’ St. Louis manufacturing facility, which employs around 90 people, will be included in the transaction.
The business to be transferred generated revenue of approximately $200 million for the 12-month period ended 30 June 2020.
The deal does not include the Ronzoni national brand, or Riviana Foods’ plants in Winchester, Virginia and Fresno, California.
“The acquisition of Ebro’s well-known regional pasta brands further strengthens our portfolio and expands our scale to better serve our national and regional customers,” said Steve Oakland, CEO and president of TreeHouse Foods.
“Our existing private label and regional brand pasta business will be a natural complement to the acquired brands and will enable us to further optimise our production network, improve capacity utilisation and deliver greater profitability and free cash flow.
“The work we have done over the past several years to strengthen our operating platform and realign our businesses into two distinct segments has positioned us well to execute this transaction and integrate the pasta business.”
The transaction, which is subject to Hart-Scott-Rodino review and other customary closing conditions, is expected to close in the fourth quarter of 2020.
Last year, TreeHouse Foods offloaded its snacks division to Atlas Holdings in a deal worth $90 million.
© FoodBev Media Ltd 2020