TreeHouse Foods Inc. announced today, March 20, that it has entered into a definitive agreement to acquire substantially all of the assets of Naturally Fresh Inc., a privately owned Atlanta-based maker of refrigerated dressings, sauces, marinades, dips and specialty items in a wide array of packaging sizes.
The products manufactured by the Naturally Fresh Inc. business will be added to each of TreeHouse’s segments. Naturally Fresh has annual revenues of approximately $80 million.
TreeHouse has agreed to pay $25 million 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 $750 million credit facility.
“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,” said Sam K. Reed, chairman, president and CEO. “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.”
TreeHouse is a food manufacturer servicing primarily the retail grocery and foodservice channels. Its products include non-dairy powdered creamer; canned soup, salad dressings and sauces; powdered drink mixes; instant oatmeal and hot cereals; macaroni and cheese, skillet dinners and other value-added side dishes and salads; salsa and Mexican sauces; jams and pie fillings under the E.D. Smith brand name; pickles and related products; and other food products including aseptic sauces, refrigerated salad dressings, and liquid non-dairy creamer.