TreeHouse Foods announced today (Nov. 5) a definitive agreement to acquire the majority of the U.S. branded pasta portfolio of Riviana Foods, a subsidiary of Ebro, for $242.5 million in cash.
The deal is notable in two respects: TreeHouse has been shedding assets, not buying, for the past three years, and the to-be acquired business involves branded products, not private label, which has been TreeHouse's forte since its founding.
The acquisition includes regional brands such as Prince (in the Northeast), Creamette (Midwest) and American Beauty (West). They generated revenue of approximately $200 million for the 12 months ended June 30.
It also includes a manufacturing facility in St. Louis, which employs 90. But it does not include the Ronzoni national brand, or Riviana plants in Winchester, Va., and Fresno, Calif., nor Riviana's rice businesses.
Riviana has been owned by Ebro, one Spain's biggest food companies, since 2004.
