TreeHouse Foods sells Snacks Division to private investment firm in US$90m deal
15 Jul 2019 --- TreeHouse Foods Inc. has entered into a definitive agreement to sell the company’s Snacks Division to Atlas Holdings LLC. Atlas has agreed to pay US$90 million for the Division, subject to certain post-closing adjustments. TreeHouse projected the Snacks Division to generate net sales of approximately US$670 million in 2019. TreeHouse plans to use the net proceeds of the sale to pay down debt. The transaction is expected to close in the third quarter of this year, subject to customary closing conditions.
The Snacks Division, with more than 800 employees, is one of the largest manufacturers and distributors of private label healthy snacks to premier retail customers in North America. It is a leader in the nuts and trail mix categories.
TreeHouse plans to update its full-year guidance to reflect this transaction in its second-quarter earnings announcement.
The Division operates three plants in the US, located in Robersonville, North Carolina; El Paso, Texas; and Dothan, Alabama. A fourth plant, in Minneapolis, Minnesota, is scheduled to close by the end of the third quarter. The Minneapolis plant, and the manufacturing-related employees located there, are not included in this transaction.
Both companies say they are committed to a smooth transition for employees, customers and consumers.
“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,” says 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.”
Atlas owns and operates 19 manufacturing and distribution businesses, which collectively employ more than 17,000 associates at over 150 facilities worldwide.
“This Snacks business will be a welcome addition to the Atlas family of manufacturing and distribution companies,” adds 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."
Edited by Gaynor Selby
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