TreeHouse Foods Inc. has entered into an agreement with TorQuest Partners LLC and other shareholders to acquire Associated Brands GP Corp. (Associated Brands), a private label manufacturer of powdered drinks, specialty teas, and sweeteners. TreeHouse has agreed to pay CAD $187 million (approximately $180 million) in cash for the business, subject to an adjustment for working capital. 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 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. With approximately 650 employees, Associated Brands is headquartered in Mississauga, Ontario, Canada, and operates three production facilities in Delta, British Columbia, Canada; Medina, N.Y.; and Toronto, Ontario, Canada. Associated Brands had sales of approximately $200 million for the 12 months ended June 30, 2013.
“We are pleased to welcome Associated Brands to our TreeHouse portfolio,” said Sam K. Reed, Chairman, President, and CEO of TreeHouse Foods. “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. 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.”