TreeHouse Foods Inc. has announced a definitive agreement has been reached with The J.M. Smucker Co. for TreeHouse to acquire the Bick’s pickles, Habitant pickled beets, Woodman’s horseradish and McLarens pickled onions brands for approximately $20 million, subject to a working capital adjustment.
TreeHouse says in a release that the acquisition of the fermented food condiment brands enhances the company’s depth in its growing pickles category and allows it to expand into Canada. TreeHouse has had a co-packing arrangement with Bick’s for many years, the release adds.
J.M. Smucker said in its own release that the divestiture will allow the company to enhance its focus on the coffee, spreads, frozen handheld and pet categories in Canada and support continued leadership in the baking category.
The purchased brands generated net sales of approximately $60 million for Smucker in its latest fiscal year, and the transaction is expected to close in the fourth quarter of TreeHouse’s current fiscal year.