WESTCHESTER, Ill., Oct. 28 /PRNewswire-FirstCall/ -- TreeHouse
Foods, Inc. (NYSE: THS) announced today that it has completed the
previously announced acquisition of S.T. Specialty Foods for
$180 million, plus up to an
additional $15 million if the company
achieves certain earnings targets for the 12 month period ending
December 31, 2010. S.T.
Specialty Foods, Inc., headquartered in Brooklyn Park, Minnesota, produces private
label macaroni and cheese, skillet dinners and other value-added
side dishes and salads.
Prior to the closing, on October 27,
2010, TreeHouse amended and restated its revolving credit
facility. The Amended and Restated Credit Agreement extends
the maturity of the Company's revolving credit facility from
August 31, 2011 until October 27, 2015 and increases the amount
available under the revolving credit facility from $600 million to $750 million. The covenants
under the Amended and Restated Credit Agreement are substantially
consistent with those contained in the Company's prior credit
agreement. The interest rate under the Amended and Restated
Credit Agreement is based on the Company's consolidated leverage
ratio, and will be determined by either LIBOR plus a margin ranging
from 1.50% to 2.50%, or a base rate (as defined in the Amended and
Restated Credit Agreement) plus a margin ranging from 0.50% to
1.50%.
The proceeds of the Amended and Restated Credit Agreement were
used to refinance the Company's existing credit facility, fund the
acquisition purchase price, and pay related transaction costs.
Upon closing of the S.T. Specialty Foods transaction,
approximately $200 million of the
Amended and Restated Credit Agreement remained undrawn and
available.
About TreeHouse Foods
TreeHouse is a food manufacturer servicing primarily the retail
grocery and foodservice channels. Its products include
non-dairy powdered coffee creamer; canned soup, salad dressings and
sauces; sugar free drink mixes and sticks; instant oatmeal and hot
cereals; macaroni and cheese, skillet dinners and other value-added
side dishes and salads; salsa and Mexican sauces; jams and pie
fillings under the E.D. Smith brand name; pickles and related
products; 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 and the largest
manufacturer of private label salad dressings, drink mixes and
instant hot cereals in the United
States and Canada based on
sales volume.
SOURCE TreeHouse Foods, Inc.
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