Treehouse Sells Snacks Division for $90million

TreeHouse Foods announced today that it has entered into a definitive agreement to sell the Company’s Snacks Division to Atlas Holdings LLC.  Atlas owns and operates 19 manufacturing and distribution businesses, which collectively employ more than 17,000 associates at over 150 facilities worldwide.  Atlas has agreed to pay $90 million for the Division, subject to certain post-closing adjustments.  TreeHouse projected the Snacks Division to generate net sales of approximately $670 million in 2019. TreeHouse plans to use the net proceeds of the sale to pay down debt. The transaction is subject to customary closing conditions and is expected to close in the third quarter of 2019. TreeHouse plans to update its full-year guidance to reflect this transaction in its second-quarter earnings announcement.

The Snacks Division, with more than 800 employees, is one of the largest manufacturers and distributors of private label healthy snacks to premier retail customers in North America. It is a leader in the nuts and trail mix categories.  The Division operates three plants, located in Robersonville, North Carolina; El Paso, Texas; and Dothan, Alabama.  A fourth plant, in Minneapolis, Minnesota, is scheduled to close by the end of the third quarter as previously announced. The Minneapolis plant, and the manufacturing-related employees located there are not included in this transaction. Both companies are committed to a smooth transition for employees, customers, and consumers.

“The sale of the Snacks Division is a key step in optimizing TreeHouse’s overall product portfolio.  It is the culmination of TreeHouse’s strategic review of its Snacks business,” said Steve Oakland, CEO, and President of TreeHouse Foods. “This transaction allows the Snacks Division to unlock its potential and serve its customers even better under Atlas’ ownership. We are grateful for the hard work put forth by the Snacks team during these last several years.”

“This Snacks business will be a welcome addition to the Atlas family of manufacturing and distribution companies,” said Michael Sher, Partner of Atlas Holdings.  “Customers are consistently choosing private label brands, and this business is a premier manufacturer with unique growth potential.  We’re excited to partner with this team to deliver the finest healthy, private label snacks in the industry.”

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Christopher Durham
Christopher Durham is the president of My Private Brand and the co-founder of The Vertex Awards. He is a strategist, author, consultant and retailer who built brands at Delhaize-owned Food Lion, and lead strategy and brand development for Lowe’s Home Improvement. He has consulted with retailers around the world on their private brand portfolios including: Family Dollar, Petco, Staples, Office Depot, Best Buy, Metro (Canada), TLW (Taiwan) and Hola (Taiwan). Durham has published five definitive books on private brands, including his first book, Fifty2: The My Private Brand Project. In 2017, he will debut his newest book, Vanguard: Vintage Originals, a visual tour of innovation and disruption in private brand going back to the mid-1800’s. Dynamic in his presentation while down to earth and frank in his opinions, he has presented at numerous conferences, including FUSE, The Dieline Conference, Packaging that Sells, Omnishopper and PLMA’a annual trade show in Chicago. Durham lives in Charlotte, NC with his wife, Laraine, and two daughters, Olivia and Sarah.