TreeHouse Foods Announces Sale of Lakeville, MN Facility and Snack Bars Business

Rhea-AI Summary

TreeHouse Foods to sell its Lakeville manufacturing facility and snack bars business to John B. Sanfilippo & Son for $63 million in cash.

Positive

• TreeHouse Foods will sell its Lakeville facility and snack bars business to John B. Sanfilippo & Son for $63 million in cash.

Negative

• The snack bars business was not expected to contribute positive adjusted EBITDA in fiscal year 2023.

OAK BROOK, Ill., Sept. 6, 2023 /PRNewswire/ -- TreeHouse Foods, Inc. (NYSE: THS. "TreeHouse Foods") today announced that it entered into a definitive agreement to sell its Lakeville, MN manufacturing facility and snack bars business to John B. Sanfilippo & Son, Inc. (NASDAQ: JBSS) for approximately $63 million in cash.  

"The sale of our Lakeville facility and snack bars business is another example of our strategy in action to be a focused private label leader in high-growth and high-margin categories," said Steve Oakland, Chairman, Chief Executive Officer, and President of TreeHouse Foods. "Importantly, we believe the business and its talented colleagues will be well positioned under John B. Sanfilippo & Son's ownership. We remain focused on deploying our capital in a manner that supports our long-term growth targets and enhances value creation for our shareholders."

The Lakeville, MN manufacturing facility has been part of the TreeHouse Foods network since its acquisition of the Private Brands business in 2016. The facility produces a range of private label snack bar products including fruit and grain, chewy, crunchy and protein bars.

The snack bars business was not expected to contribute positive adjusted EBITDA in fiscal year 2023. The transaction is subject to customary closing conditions and is expected to close within 30 days.

Following close, the existing private label snack bars business, customer relationships, and Lakeville-based employees will transition to John B. Sanfilippo & Son, Inc. Both companies are committed to a smooth transition for employees, customers and consumers.

About TreeHouse Foods
TreeHouse Foods, Inc. is a leading private label food and beverage manufacturer in North America. Our purpose is to engage and delight – one customer at a time. Through our customer focus and category experience, we strive to deliver excellent service and build capabilities and insights to drive mutually profitable growth for TreeHouse and our customers. Our purpose is supported by investment in depth, capabilities and operational efficiencies, which are aimed to capitalize on the long-term growth prospects in the categories in which we operate.

Additional information, including TreeHouse Foods' most recent statements on forms 10-Q and 10-K, may be found at treehousefoods.com.

About John B. Sanfilippo & Son, Inc.
Based in Elgin, Illinois, John B. Sanfilippo & Son, Inc. is a processor, packager, marketer and distributor of snack bars, dried cheese, and nut & dried-fruit based products that are sold under the Company's Fisher ®, Orchard Valley Harvest ®, Squirrel Brand ®, Southern Style Nuts ® and Just the Cheese ® brand names and under a variety of private brands.

Additional information, including John B. Sanfilippo & Son, Inc.'s most recent statements on forms 10-Q and 10-K, may be found at jbssinc.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 "believe," "estimate," "project," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could," 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, expected, or intended. 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: risks related to the impact that the divestiture of a significant portion of our Meal Preparation Business or any such divestiture might have on the Company's operations; disruptions or inefficiencies in our supply chain and/or operations; loss of key suppliers; raw material and commodity costs due to inflation; labor strikes or work stoppages; multiemployer pension plans; labor shortages and increased competition for labor; success of our growth, reinvestment, and restructuring programs; our level of indebtedness and related obligations; disruptions in the financial markets; interest rates; changes in foreign currency exchange rates; collectibility of our note receivable, customer concentration and consolidation; competition; our ability to execute on our business strategy; our ability to continue to make acquisitions and execute on divestitures or effectively manage the growth from acquisitions; impairment of goodwill or long lived assets; changes and developments affecting our industry, including customer 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; shareholder activism; disruptions in or failures of our information technology systems; changes in weather conditions, climate changes, and natural disasters; 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 Quarterly Report on Form 10-Q, our Annual Report on Form 10-K for the year ended December 31, 2022, and from time to time in our filings with the Securities and Exchange Commission ("SEC"). You 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.

FAQ

What is TreeHouse Foods selling?

TreeHouse Foods is selling its Lakeville manufacturing facility and snack bars business.

Who is TreeHouse Foods selling to?

TreeHouse Foods is selling to John B. Sanfilippo & Son.

How much is the sale for?

The sale is for approximately $63 million in cash.

When is the expected closing date?

The transaction is expected to close within 30 days.

Will there be a smooth transition for employees and customers?

Both companies are committed to a smooth transition for employees, customers, and consumers.