Private label powerhouse TreeHouse Foods will buy Protenergy Natural Foods of Canada for C$170 million (US$154 million) in cash, adding Protenergy's line of private label broths, soups and gravies. The deal is expected to close in the second quarter. Sellers are Whitecastle Investments Ltd., Whitecap Venture Partners and other investors.
Protenergy is especially into carton and recart broth, soups and gravies, both for private label and corporate brands, and also serves as a co-manufacturer of national brands. With approximately 300 employees, the company is headquartered in Richmond Hill, Ontario, and operates a second production facility in Cambridge, Md. Protenergy had 2013 sales of approximately C$130 million.
"The acquisition of Protenergy is expected to expand our existing packaging capabilities … [and] leverage our R&D capabilities in the evolution of shelf stable liquids from cans to cartons," said Sam Reed, chairman and president/CEO of TreeHouse Foods. "We believe Protenergy's packaging applications present meaningful growth opportunities in the categories that we already play in today, as well as closely adjacent food and beverage categories."