USA – Packaged Foods company, TreeHouse Foods has sold its snacks business to private investment and equity firm Atlas Holdings LLC for US$90 million.
The company said the transaction which is subject to post-closing adjustments as well as customary closing conditions will enable TreeHouse pay down its debt.
The divestment does not however include the company’s fourth plant and employees located in Minneapolis, Minnesota.
In May, TreeHouse announced that it was planning to close the Minneapolis facility in September, possibly cutting 120 jobs.
The Snacks Division employs 800 people and is one of the largest manufacturers and distributors of private label healthy snacks to premier retail customers in North America.
It is also a leader in the nuts and trail mix categories, operating three plants, located in Robersonville, North Carolina; El Paso, Texas; and Dothan, Alabama.
“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.”
The company said the move is part of its strategy to optimize its product portfolio which also includes broth and single-serve hot beverages, meal solutions, and healthy snacks.
It has over 40 production facilities across the United States, Canada and Italy offering natural, organic and preservative-free ingredients in different packaging formats and flavor profiles.
“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.”
TreeHouse also divested its private label, read-to-eat cereal business to Brentwood-based consumer packaged goods company, Post Holdings.