US own-label firm TreeHouse Foods has struck a deal to buy privately-owned dressings and sauces firm Naturally Fresh.
The US$25m cash deal, announced today (20 March), will see Naturally Fresh’s products, including dressings, sauces, marinades, dips and speciality items, added to TreeHouse’s portfolio.
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The transaction is expected to have a neutral impact on TreeHouse’s earnings in 2012, but is expected to positively impact 2013 earnings by around $0.05 per share, it said.
The deal is expected to close within 30 days, subject to satisfaction of customary closing conditions, and will be financed through borrowings under TreeHouse’s existing $750m credit facility.
“Naturally Fresh provides retailers with a premium offering in the refrigerated produce section, and the acquisition is the perfect complement to our existing broad array of private label shelf stable dressings, sauces and salsa,” said chairman, president and CEO Sam Reed.
“Additionally, the acquisition will expand our refrigerated manufacturing and packaging capabilities, broaden our distribution footprint and further develop our presence within the growing segment of fresh and good for you foods. Naturally Fresh’s Atlanta facility, coupled with our existing West Coast and Chicago based refrigerated foods plants, will also allow us to more efficiently service customers from coast to coast.”
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By GlobalDataGeorgia-based Naturally Fresh has annual revenues of around $80m.
