OAK BROOK, Ill., Feb. 1, 2016 /PRNewswire/ -- TreeHouse Foods
(NYSE: THS) announced today that it has completed the acquisition
of ConAgra Foods' (NYSE: CAG) private brands operations. TreeHouse
paid $2.7 billion in cash plus
transaction expenses for the business and financed the transaction
through the closing of its previously announced offerings of
$775 million in aggregate principal
senior notes due 2024 with a 6.0% annual interest rate and common
stock issuance of 13.3 million shares at a price of $65 per share (which includes the exercise, in
full, of the overallotment option), aggregating $862.5 million in gross proceeds. The
remainder of the purchase price was financed under the Company's
revolving credit facility.
"We are pleased to have closed the acquisition, and will
continue to focus on driving shareholder value and offering our
customers value without compromise through economies of scale,
quality products and superior customer service," said Sam K. Reed, Chairman, President and Chief
Executive Officer of TreeHouse Foods.
"The Private Brands acquisition broadens our portfolio of
offerings for our customers. We remain unwaveringly committed
to supporting our customers' efforts to build their corporate
brands and offer consumers the best combination of choice and
value," Mr. Reed continued. "We are looking forward to
working as one go-to-market team to achieve success and will work
tirelessly to develop the systems and infrastructure to deliver a
seamless integration."
The acquisition of ConAgra's private brands operations
meaningfully expands TreeHouse's presence in private label dry and
refrigerated grocery, and will be called TreeHouse Private Brands.
Bay Valley Foods (with Flagstone Foods) and TreeHouse Private
Brands will be the operating platforms of TreeHouse Foods,
Inc. Following the Private Brands acquisition, TreeHouse
Foods, Inc. has pro forma sales of approximately $7 billion for the twelve months ended
December 31, 2015, more than 50
manufacturing facilities and over 16,000 employees.
ABOUT TREEHOUSE FOODS
TreeHouse Foods, Inc. is a manufacturer of packaged foods and
beverages with more than 50 manufacturing facilities
across the United States,
Canada and Italy that focuses
primarily on private label products for both retail grocery and
food away from home customers. We manufacture shelf stable,
refrigerated, frozen and fresh products,
including beverages and beverage enhancers (single serve
beverages, coffees, teas, creamers, powdered beverages and
smoothies); meals (cereal, pasta, macaroni and cheese and side
dishes); retail bakery (refrigerated and frozen
dough); condiments (pourable and spoonable dressing, dips,
pickles, soups and sauces) and healthy snacks (nuts, trail mix,
bars, dried fruits and vegetables). We have a comprehensive
offering of packaging formats and flavor profiles, and we also
offer natural, organic and preservative free ingredients in many
categories. Our strategy is to be the leading supplier of private
label food and beverage products by providing the best balance of
quality and cost to our customers.
Additional information, including TreeHouse's most recent
statements on Forms 10-Q and 10-K, may be found at TreeHouse's
website, http://www.treehousefoods.com.
FORWARD LOOKING STATEMENTS
This press release contains "forward-looking statements."
Forward-looking statements include all statements that do not
relate solely to historical or current facts, and can generally be
identified by the use of words such as "may," "should," "could,"
"expects," "seek to," "anticipates," "plans," "believes,"
"estimates," "intends," "predicts," "projects," "potential" or
"continue" or the negative of such terms and other comparable
terminology. These statements are only predictions. The
outcome of the events described in these forward-looking statements
is subject to known and unknown risks, uncertainties and other
factors that may cause TreeHouse or its industry's actual results,
levels of activity, performance or achievements to be materially
different from any future results, levels of activity, performance
or achievements expressed or implied by these forward-looking
statements. TreeHouse's Form 10-K for the year ended
December 31, 2014, and other filings
with the SEC, discuss some of the factors that could contribute to
these differences. You are cautioned not to unduly rely on
such forward-looking statements, which speak only as of the date
made, when evaluating the information presented in this press
release. TreeHouse expressly disclaims any obligation or
undertaking to disseminate any updates or revisions to any
forward-looking statement contained herein, to reflect any change
in its expectations with regard thereto, or any other change in
events, conditions or circumstances on which any statement is
based.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/treehouse-foods-completes-the-acquisition-of-conagras-private-brands-business-300212997.html
SOURCE TreeHouse Foods, Inc.