TreeHouse completes acquisition of ConAgra private brands
TreeHouse Foods has completed its acquisition of ConAgra Foods’ private brands operations for $2.7 billion.
“We are pleased to have closed the acquisition, and will continue to focus on driving shareholder value and offering our customers value without compromise through economies of scale, quality products and superior customer service,” says Sam Reed, chairman, president and CEO of TreeHouse Foods.
The acquisition of ConAgra’s private brands operations expands TreeHouse's presence in private label dry and refrigerated grocery, and will be called TreeHouse Private Brands. Following the acquisition, TreeHouse Foods has pro forma sales of approximately $7 billion for the twelve months ended December 31, 2015, more than 50 manufacturing facilities and over 16,000 employees.
ConAgra says the transaction will help the company refocus on building its consumer foods and commercial foods segments—which include recognized brands such as Chef Boyardee, Healthy Choice, Peter Pan, Hunt’s and Slim Jim.
Under the terms of the agreement, ConAgra Foods will divest most of its private label operations, which are classified as discontinued operations. Among other assets, this includes a network of 32 manufacturing facilities in the US, Canada and Italy. ConAgra Foods will retain certain private label operations with a strong connection to its existing consumer foods business, specifically canned pasta, cooking spray, peanut butter, pudding/gels, Gelit frozen pasta product offerings, as well as the HK Anderson and Kangaroo brand equity, trademark and business portfolios.