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.