TreeHouse Foods To Acquire Associated Brands
Private label powerhouse TreeHouse Foods Inc., Oak Brook, Ill., on Aug. 8 announced an agreement to acquire Associated Brands GP Corp., a private label manufacturer of powdered drinks, specialty teas and sweeteners. TreeHouse has agreed to pay C$187 million cash (approximately US $180 million) to owner TorQuest Partners LLC and other shareholders.
With approximately 650 employees, Associated Brands is headquartered in Mississauga, Ontario, and operates three production facilities in Delta, British Columbia; Medina, New York; and Toronto. Associated Brands had sales of approximately $200 million for the 12 months ended June 30. Following the acquisition, TreeHouse will have pro forma 2013 sales of approximately $2.5 billion.
The acquisition will strengthen TreeHouse's retail presence in private label dry grocery and will introduce a line of specialty tea products to complement its fast growing single serve coffee business.
The transaction is expected to close in the third quarter of 2013.