TreeHouse to Buy Cains Foods for $35M
TreeHouse Foods, Inc. has 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, with approximately $80 million in annual revenue. The Cains' product portfolio offers retail and foodservice customers a wide array of packaging sizes, sold under both private label store brands and the Cains, Naturally Delicious and Olde Cape Cod brands.
TreeHouse agreed to pay $35 million in cash for the business, subject to adjustments for working capital and taxes. The transaction is expected to have a neutral impact on TreeHouse's earnings in 2013, but is expected to positively impact 2014 earnings by approximately $0.05 per share. The transaction is expected to close within 30 days, subject to the satisfaction of customary closing conditions, and will be financed through borrowings under TreeHouse's existing $750 million credit facility.
"Cains has a nearly 100 year tradition of manufacturing high quality products, and this is a very good business with experienced management and a dedicated team of employees," saiys Sam K. Reed, chairman, president and chief executive officer of TreeHouse Foods. "Cains will be a great fit within the TreeHouse family, rounding out our industry leading assortment of private label pourable and spoonable dressings."
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TreeHouse agreed to pay $35 million in cash for the business, subject to adjustments for working capital and taxes. The transaction is expected to have a neutral impact on TreeHouse's earnings in 2013, but is expected to positively impact 2014 earnings by approximately $0.05 per share. The transaction is expected to close within 30 days, subject to the satisfaction of customary closing conditions, and will be financed through borrowings under TreeHouse's existing $750 million credit facility.
"Cains has a nearly 100 year tradition of manufacturing high quality products, and this is a very good business with experienced management and a dedicated team of employees," saiys Sam K. Reed, chairman, president and chief executive officer of TreeHouse Foods. "Cains will be a great fit within the TreeHouse family, rounding out our industry leading assortment of private label pourable and spoonable dressings."
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