TreeHouse Foods has acquired a North American manufacturer of private label foods Associated Brands from TorQuest Partners and other shareholders in a C$187m ($180m) all cash deal.
Based in Mississauga, Ontario, Associated Brands operates three production facilities in Delta, British Columbia, Canada; Medina, New York; and Toronto, Ontario, Canada and has a workforce of 650. It caters to almost all of the 50 major North American food retailers.
The company is primarily engaged in the manufacture of dry packaged food products such as flavored drink mixes, specialty tea, hot chocolate drinks, dessert mixes, soups, bouillon and side dishes, among others.
With this acquisition, TreeHouse introduces a line of specialty tea products to complement its single serve coffee business and strengthen its retail presence in private label dry grocery.
In August, TreeHouse Foods signed an agreement with TorQuest Partners to acquire Associated Brands for $180m.
TreeHouse Foods chairman, president and CEO Sam K Reed said the Associated Brands has a strong North American presence in a number of dry mix categories that are complementary to TreeHouse, such as powdered drinks, oatmeal and side dishes.
Reed added, "Through Associated Brands, we will also enter the large and growing specialty tea category.
"We see significant opportunities to expand Associated Brands' sales, while leveraging their strong customer relationships in both retail and industrial channels."
The company expects the transaction to have a neutral effect on 2013 earnings and add approximately $0.14 to $0.16 in EPS in 2014.
