TreeHouse Foods Inc. (THS:US), the maker of private-label foods for retailers, agreed to buy Flagstone Foods for $860 million to expand in healthy snacks such as dried fruits.
The all-cash deal will add 24 cents to 28 cents in the first full year after completion, Oakbrook, Illinois-based TreeHouse said in a statement today. The final price to be paid to private-equity firm Gryphon Investors and other shareholders is subject to an adjustment of working capital, TreeHouse said.
Flagstone holds the No. 1 private-label position in the trail mix and dried fruit categories and generated $697 million in sales for the year ended Dec. 28, TreeHouse said. TreeHouse has acquired at least six food companies in the past four years to add products including soups and broths, according to data (THS:US) compiled by Bloomberg.
TreeHouse’s shares jumped 5.1 percent to $83.98 at 8:43 a.m. New York time before the markets opened.
The company used JPMorgan Chase & Co. and Perella Weinberg Partners LP as financial advisers, while Winston & Strawn LLP served as legal adviser. Moelis & Co. (MC:US), Houlihan Lokey and BMO Capital Markets Corp. advised St. Paul, Minnesota-based Flagstone and Gryphon, with Kirkland & Ellis serving as legal counsel.
To contact the reporter on this story: Bruce Rule in New York at brule1@bloomberg.net
To contact the editors responsible for this story: Cecile Daurat at cdaurat@bloomberg.net Bruce Rule
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