TreeHouse Foods to Buy Associated Brands For $180 Million

OAKBROOK, Ill.TreeHouse Foods, Inc., has entered into an agreement with TorQuest Partners LLC and other shareholders to acquire Associated Brands GP Corporation, a leading private-label manufacturer of powdered drinks, specialty teas and sweeteners, for approximately $180 million in cash. The transaction is expected to close in the third quarter of 2013, subject to the satisfaction of customary closing conditions.

The acquisition of Associated Brands will significantly 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. Associated Brands is based in Mississauga, Ontario, Canada and operates three production facilities in Toronto; Delta, British Columbia; and Medina, New York.

"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," said Sam K. Reed, chairman, president and chief executive officer of TreeHouse Foods. Through Associated Brands, we will also enter the large and growing specialty tea category. Not only is tea recognized for its nutritional and health benefits, but it will also be a wonderful complement to our rapidly growing single-serve coffee platform. We see significant opportunities to expand Associated Brands' sales, while leveraging their strong customer relationships in both retail and industrial channels."

In June 2013, TreeHouse Foods entered into a definitive agreement to acquire Cains Foods L.P., a privately owned Ayer, Mass.-based manufacturer of shelf-stable mayonnaise, dressings and sauces, for $35 million in cash.

TreeHouse products include non-dairy powdered creamers, private-label canned soups, refrigerated and shelf-stable salad dressings and sauces, powdered drink mixes and single-serve hot beverages, hot cereals, macaroni and cheese, skillet dinners, Mexican sauces, jams and pie fillings, pickles and related products, aseptic sauces, and liquid non-dairy creamer.