TreeHouse Foods, Inc. to Acquire San Antonio Farms
April 23 2007 - 6:00AM
PR Newswire (US)
WESTCHESTER, Ill., April 23 /PRNewswire-FirstCall/ -- TreeHouse
Foods, Inc. (NYSE:THS) today announced it has entered into a
definitive agreement with Silver Ventures, Inc., to acquire San
Antonio Farms, a San Antonio, Texas based maker of premium quality
Mexican sauces including salsa, picante, cheese dip, enchilada
sauce and taco sauce. San Antonio Farms sells to retail customers
primarily under private label arrangements and to food service
customers under the San Antonio Farms label. TreeHouse has agreed
to pay $88.5 million in cash for the business, plus an adjustment
for working capital. The transaction is expected to close within 45
days, subject to satisfaction of customary closing conditions. The
transaction will be financed through borrowings under the Company's
existing $500 million credit facility. "We are very excited to add
Mexican sauces to our family of products," commented Sam K. Reed,
Chairman and Chief Executive Officer. "Salsa, picante and other
Mexican sauces are experiencing great growth and private label
Mexican sauces are growing even faster than the total category. San
Antonio Farms is a well managed company with premium products, a
history of profitable growth with talented and dedicated employees.
The transaction will be neutral to THS earnings over the balance of
the year, but is expected to add approximately $0.05 per share to
earnings in 2008." For the 12 months ending March 30, 2007 San
Antonio Farms had revenues of $45.3 million. For the five years
ended December 31, 2006 the company enjoyed a compound annual
growth rate of 15.2%. The company manufactures all of its products
at its processing and distribution facility in San Antonio, Texas
where it employs approximately 100 people. "As a New York Stock
Exchange company with a national focus, TreeHouse will be a good
fit for San Antonio Farms and will help the company grow further,"
commented Jack Kelly, President of San Antonio Farms. The San
Antonio Farms headquarters will remain in San Antonio. TreeHouse
does not anticipate any significant changes to the existing
operations. Brown, Gibbons Lang & Company is acting as
financial advisor to TreeHouse in connection with the transaction.
Lincoln International is advising San Antonio Farms and Silver
Ventures on the transaction. About TreeHouse Foods TreeHouse is a
food manufacturer servicing primarily the retail grocery and
foodservice channels. Its products include pickles and related
products; non-dairy powdered coffee creamer; private label soup and
infant feeding products, and other food products including aseptic
sauces, refrigerated salad dressings, and liquid non-dairy creamer.
TreeHouse believes it is the largest manufacturer of pickles and
non-dairy powdered creamer in the United States based on sales
volume. ABOUT SAN ANTONIO FARMS San Antonio Farms is a producer of
Mexican sauces for the retail, foodservice and industrial markets.
It sells its products under its own brands, under retailer's store
brand names, and as custom recipes for restaurant chains and
foodservice distributors. 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 the Company 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 achievement expressed or implied
by these forward-looking statements. TreeHouse's Form 10-K for the
year ended December 31, 2006 discusses 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 evaluation the information presented in this
presentation. The Company 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. http://www.newscom.com/cgi-bin/prnh/20050726/CGTREELOGO
http://photoarchive.ap.org/ DATASOURCE: TreeHouse Foods, Inc.
CONTACT: Investor Relations, TreeHouse Foods, Inc., +1-708-483-1300
Ext. 1343 Web site: http://www.treehousefoods.com/
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