TreeHouse Foods has bolstered its pasta business with the acquisition of the Prince, Creamette and American Beauty branded lines.
The Oak Brook, Ill.-based leader in private label manufacturing and distribution of food and beverages has acquired “the majority of the U.S. branded pasta portfolio” of Riviana Foods, a subsidiary of Ebro, for $242.5 million in cash. The most recognizable brands in the purchase are the Prince brand in the Northeast, Creamette brand in the Midwest and American Beauty brand in the West. The brands generated revenue reaching $200 million for the 12 months ended June 30 and TreeHouse will run the branded lines but also use them to further “optimize” their private brand pasta.
"Our existing private label and regional brand pasta business will be a natural complement to the acquired brands and will enable us to further optimize our production network, improve capacity utilization and deliver greater profitability and free cash flow,” said Steve Oakland, TreeHouse CEO.
"The acquisition of Ebro's well-known regional pasta brands further strengthens our portfolio and expands our scale to better serve our national and regional customers," Oakland said.
Other regional branded pastas included in the deal are Skinner, No Yolks, San Giorgio, Light ‘n Fluffy, Mrs. Weiss’, Wacky Mac, P&R Procino-Rossi and New Mill. The deal includes acquiring the St. Louis-based manufacturing facility that employs 90 people.
Not included in the deal is the Ronzoni national brand or its plants in Winchester, Va. and Fresno, Calif.
With nearly 40 production facilities across North America already, TreeHouse Foods supplies retailer private brands in several categories including snacks, beverages, meal preparation, and refrigerated, frozen and fresh foods. The acquisition of these brands is subject to review and is expected to close in the fourth quarter of this year.
"The work we have done over the past several years to strengthen our operating platform and realign our businesses into two distinct segments has positioned us well to execute this transaction and integrate the pasta business," Oakland said. "We are confident this accretive acquisition, along with the significant progress we have made in generating free cash flow this year, will enhance our ability to drive shareholder value."