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TreeHouse signs a deal for Riviana’s pasta business
Posted on Thursday, 05 November 2020 14:53
TreeHouse Foods has agreed to acquire the majority of the US branded pasta business of Riviana Foods for USD 242.50 million in cash.
Closing is expected before the end of 2020 and is subject to the usual raft of conditions.
The acquisition includes well-known regional brands such as Prince, Creamette and American Beauty, which generated revenues of around USD 200.00 million in the year ended 30th June 2020.
New York-listed TreeHouse is expecting the transaction to boost earnings per share by between USD 0.20 to USD 0.30 in the first full year after closing.
Upon completion, the group believes its leverage ratio to remain in the 3.0x to 3.5x range.
Steve Oakland, chief executive of TreeHouse, said: “The acquisition of Ebro's well-known regional pasta brands further strengthens our portfolio and expands our scale to better serve our national and regional customers.
“The acquisition of Ebro's well-known regional pasta brands further strengthens our portfolio and expands our scale to better serve our national and regional customers.”
In the nine months ended 30th September 2020, TreeHouse posted net sales of USD 3.18 billion, compared to USD 3.15 billion in the corresponding period of 2019.
Net loss totalled USD 20.60 million in Q1-3 2020 (Q1-3 2019: USD 376.50 million).
Zephyr, the M&A database published by Bureau van Dijk, shows there have been 44 deals targeting cookie, cracker and pasta manufacturers announced worldwide in 2020 to date.
In the largest of these, Gruppo Ferrero is buying UK-based Foxs Biscuits’ branded and biscuit business for USD 318.00 million.
Other targets included Tiga Pilar Sejahtera Food, Qingdao Foods, Tiga Pilar Sejahtera Food and Kemen Noodle Manufacturing.
© Zephus Ltd