OAK BROOK, Ill., July 8, 2019 /PRNewswire/ -- TreeHouse
Foods, Inc. (NYSE: THS) announced today that it has entered into a
definitive agreement to sell the Company's Snacks Division to Atlas
Holdings LLC ("Atlas"). Atlas owns and operates 19
manufacturing and distribution businesses, which collectively
employ more than 17,000 associates at over 150 facilities
worldwide. Atlas has agreed to pay $90
million for the Division, subject to certain post-closing
adjustments. TreeHouse projected the Snacks Division to
generate net sales of approximately $670
million in 2019. TreeHouse plans to use the net proceeds of
the sale to pay down debt. The transaction is subject to customary
closing conditions and is expected to close in the third quarter of
2019. TreeHouse plans to update its full-year guidance to reflect
this transaction in its second quarter earnings announcement.
The Snacks Division, with more than 800 employees, is one of the
largest manufacturers and distributors of private label healthy
snacks to premier retail customers in North America. It is a leader in the nuts and
trail mix categories. The Division operates three plants,
located in Robersonville, North
Carolina; El Paso, Texas;
and Dothan, Alabama. A fourth plant, in Minneapolis, Minnesota, is scheduled to close
by the end of the third quarter as previously announced. The
Minneapolis plant, and the
manufacturing-related employees located there, are not included in
this transaction. Both companies are committed to a smooth
transition for employees, customers and consumers.
"The sale of the Snacks Division is a key step in optimizing
TreeHouse's overall product portfolio. It is the culmination
of TreeHouse's strategic review of its Snacks business," said
Steve Oakland, CEO and President of
TreeHouse Foods. "This transaction allows the Snacks Division to
unlock its potential and serve its customers even better under
Atlas' ownership. We are grateful for the hard work put forth by
the Snacks team during these last several years."
"This Snacks business will be a welcome addition to the Atlas
family of manufacturing and distribution companies," said
Michael Sher, Partner of Atlas
Holdings. "Customers are consistently choosing private label
brands, and this business is a premier manufacturer with unique
growth potential. We're excited to partner with this team to
deliver the finest healthy, private label snacks in the
industry."
ABOUT TREEHOUSE FOODS
TreeHouse Foods, Inc. is a leading manufacturer and distributor of
private label packaged foods and beverages in North America.
We have over 40 production facilities across the United
States, Canada and Italy, and our vision is to be
the undisputed solutions leader for custom brands for our
customers. Our product portfolio includes shelf stable,
refrigerated, frozen and fresh products, including baked goods
(refrigerated and frozen dough, cereal, cookies, crackers, pretzels
and snack bars); beverages (broth, single serve hot beverages,
creamers and powdered drinks); meal solutions (dressings, hot
cereal, macaroni and cheese, pasta, pickles, sauces and side
dishes); and healthy snacks (dried fruits and vegetables, nuts
and trail mix). We have a comprehensive offering of packaging
formats and flavor profiles, and we also offer natural, organic and
preservative-free ingredients across almost our entire portfolio.
Our purpose is to make high quality food and beverages affordable
to all.
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.
ABOUT ATLAS HOLDINGS LLC
Headquartered in Greenwich,
Connecticut and founded in 2002, Atlas and its affiliates
own and operate 19 platform companies which employ more than 17,000
associates at more than 150 facilities worldwide. Atlas
operates in sectors such as aluminum processing, automotive,
building materials, capital equipment, construction services, food
packaging, paper, power generation, pulp, supply chain management
and wood products. Atlas' companies together generate more
than $5 billion dollars in revenues
annually. For additional information, please
visit www.atlasholdingsllc.com.
FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking" statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements and other information are based on
our beliefs, as well as assumptions made by us, using information
currently available. The words "anticipate," "believe," "estimate,"
"project," "expect," "intend," "plan," "should," and similar
expressions, as they relate to us, are intended to identify
forward-looking statements. Such statements reflect our current
views with respect to future events and are subject to certain
risks, uncertainties, and assumptions. Should one or more of these
risks or uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may vary materially
from those described herein as anticipated, believed, estimated,
projected, expected, intended, or planned. We do not intend to
update these forward-looking statements following the date of this
press release.
Such forward-looking statements, because they relate to future
events, are by their very nature subject to many important factors
that could cause actual results to differ materially from those
contemplated by the forward-looking statements contained in this
press release and other public statements we make. Such factors
include, but are not limited to: the success of our restructuring
programs, our level of indebtedness and related obligations;
disruptions in the financial markets; interest rates; changes in
foreign currency exchange rates; customer concentration and
consolidation; raw material and commodity costs; competition; our
ability to continue to make acquisitions in accordance with our
business strategy; changes and developments affecting our industry,
including consumer preferences; the outcome of litigation and
regulatory proceedings to which we may be a party; product recalls;
changes in laws and regulations applicable to us; disruptions in or
failures of our information technology systems; labor strikes or
work stoppages; and other risks that are set forth in the Risk
Factors section, the Legal Proceedings section, the Management's
Discussion and Analysis of Financial Condition and Results of
Operations section, and other sections of our Annual Report on Form
10-K for the year ended December 31,
2018, and from time to time in our filings with the
Securities and Exchange Commission. Readers 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.
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SOURCE TreeHouse Foods, Inc.