Oak Brook / IL. (thf) TreeHouse Foods Inc. (THF) announced that it entered into a definitive agreement to sell its Lakeville (Minnesota) manufacturing facility and snack bars business to John B. Sanfilippo + Son Inc. 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, CEO and President THF. «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 business, customer relationships, and Lakeville-based employees will transition to John B. Sanfilippo + Son. Both companies are committed to a smooth transition.