TreeHouse Foods To Buy Private Brand Tea Maker Harris Tea In $205 Mln Deal; Backs Outlook

Treehouse Foods

29.95 CHF -0.15%

• Charts
• News
• Analysen

Kaufen / Verkaufen

(RTTNews) - TreeHouse Foods, Inc. (THS), a private brands snacking and beverage manufacturer, announced Monday its definitive agreement to buy certain units that operate the private brand tea business of Harris Freeman & Co, Inc. for around $205 million, subject to customary purchase price adjustments.

The company also reiterated its 2024 full year guidance, including the expectation of sequential improvement in volume growth and profit margin in the fourth quarter.

Harris Tea, a private brand tea manufacturer in the U.S., operates manufacturing facilities in Moorestown, NJ and Marietta, GA. The deal includes these facilities, along with around 300 Harris Tea team members.

The acquisition of Harris Tea is expected to close in the first quarter of 2025 and will be funded primarily with cash on hand.

TreeHouse Foods said the acquisition will provide vertical integration across its existing tea business, and will be accretive to the company's overall growth and margins.

Steve Oakland, Chairman, Chief Executive Officer, and President, said, "The acquisition of Harris Tea strengthens our competitive positioning in the fast-growing tea category and adds unique blending and sourcing capabilities that customers desire, building upon TreeHouse Foods' category leadership, enhancing our position through additional depth and scale. This acquisition aligns with our long-term strategy to build capabilities in our higher-growth, higher-margin categories."

Wells Fargo Securities, LLC served as exclusive financial advisor and Holland & Knight served as legal counsel to Harris Tea on the deal.

In pre-market activity on the NYSE, TreeHouse Foods shares were losing around 1.1 percent to trade at $33.95.