Comprehensive M&A data with integrated detailed company information
Atlas goes nutty for Treehouse snacks
Posted on Tuesday, 09 July 2019 15:35
Treehouse is offloading its underperforming snacks business to Atlas Holdings for USD 90.00 million as the listed private-label packaged foods and beverages maker seeks to improve its portfolio.
Billed as a leader in the nuts and trail mix categories, the division is also one of the largest manufacturers and distributors of non-branded bars and dried fruit, for example, to premier retail customers in North America.
It has 800 employees and three plants, which are located in Robersonville, North Carolina; El Paso, Texas; and Dothan, Alabama.
A fourth facility in Minneapolis, Minnesota, is scheduled to close by the end of the third quarter as previously announced and will not be included in the sale.
The snacks division is projected to generate net sales of some USD 670.00 million in 2019; the top line of the business has been under pressure from the loss of distribution driven by competitiveness in the nuts and trail mix category.
It will become part of Atlas’s family of manufacturing and distribution companies comprising 19 businesses across sectors such as automotive and energy collectively employing over 17,000 people at more than 150 facilities worldwide.
News of the sale comes less than a month after Treehouse announced plans to sell its ready-to-eat cereal operations, which had sales of roughly USD 260.00 million in 2018, to Post Holdings.
Zephyr, the M&A database published by Bureau van Dijk, shows 855 deals targeting the global food manufacturing sector have been announced so far this calendar year.
US-based companies operating in the field account for 141 of these transactions, the largest of which features Ferrero acquiring Kellogg’s cookies, fruit and fruit-flavoured snacks, pie crusts, and ice cream cones businesses for USD 1.30 billion.
Treehouse’s snack sale will rank joint tenth in terms of value – alongside Motif Ingredients, which raised USD 90.00 million in series A round of funding in February.
Louis Dreyfuss, Fonterra Co-operative, Viking Global Investors, General Atlantic and Breakthrough Energy took part in the financing of the Boston, Massachusetts-based startup plant-based and healthy food ingredients maker.
© Zephus Ltd