TreeHouse Foods, Inc. has entered into a definitive agreement to sell its snacks division to Atlas Holdings LLC of Greenwich, Conn. Atlas owns and operates 19 manufacturing and distribution businesses, which together employ more than 17,000 associates at more than 150 facilities worldwide. Atlas agreed to pay $90 million for the division, subject to closing adjustments.
TreeHouse projected the snacks division to generate net sales of approximately $670 million in 2019, and plans to use the net proceeds of the sale to pay down debts. The transaction is expected to close in the third quarter of 2019.
The snacks division, which specializes in nuts and trail mixes, has more than 800 employees and is one of the largest manufacturers and distributors of private-label, healthy snacks to retail customers in North America. The division operates three plants located 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,” says Steve Oakland, CEO and President of TreeHouse Foods. “It is the culmination of TreeHouse’s strategic review of its Snacks business. 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,” says 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.”
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