OAK
BROOK, Ill., Jan. 2, 2025
/PRNewswire/ -- TreeHouse Foods, Inc. (NYSE: THS) announced that it
has completed its acquisition of Harris
Tea for approximately $205
million.
"The acquisition of Harris Tea is
a good use of our balance sheet strength, bringing a fast-growing,
margin-accretive business into TreeHouse Foods, and giving us an
immediate leadership position in private label tea," said TreeHouse
Foods Chairman, CEO and President Steve
Oakland. "Harris Tea's
capabilities in tea sourcing, blending and packing, as well as its
scale, industry expertise, and customer relationships, fit our
strategy well."
TreeHouse Foods funded the acquisition of Harris Tea primarily with cash on hand and
expects the acquisition to be accretive to revenue and
profitability in 2025. As previously disclosed, the purchase price
equals roughly 8.5x trailing-twelve-month adjusted EBITDA, or 6.5x
net of synergies and the net present value of future tax
benefits.
TreeHouse Foods is reiterating its 2024 full-year guidance,
including the expectation of sequential improvement in volume
growth and profit margin in the fourth quarter.
About TreeHouse Foods
TreeHouse Foods, Inc. is a
leading private brands snacking 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 for 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 the Company's
website, http://www.treehousefoods.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 quality
issues, disruptions, or inefficiencies in our supply chain and/or
operations; loss or consolidation 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;
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 and the prevalence of weight loss drugs; the
outcome of litigation and regulatory proceedings to which we and/or
our customers 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; geopolitical
events; 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 Annual Report on Form 10-K for
the year ended December 31, 2023, 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.
