News
TreeHouse acquires Conagra private brands
6 Nov 2015TreeHouse Foods is to acquire ConAgra Foods' private brands operations, creating a company with annual sales of nearly $7 billion, 50 manufacturing facilities and over 16,000 exployees.
TreeHouse Foods is to acquire ConAgra Foods' private brands operations. Annual sales of the combined entity will be nearly $7 billion. The transaction is valued at $2.7 billion, and closing is anticipated in the first quarter of 2016.
The acquisition of ConAgra's private brands operations will meaningfully expand TreeHouse's presence in private label dry and refrigerated grocery, the company said. The private brands operations had sales of approximately$3.6 billion for the twelve months ended May 31, 2015. Upon closing, TreeHouse will have more than 50 manufacturing facilities and over 16,000 employees. "Since our founding ten years ago, our strategy has been to drive shareholder value by consolidating supply of private label brands. We offer our customers value without compromise through economies of scale, quality products and superior customer service," said Sam K. Reed, Chairman and Chief Executive Officer of TreeHouse Foods. "The union of TreeHouse and ConAgra's private brands business establishes an industry leader in customer brands and custom products with significant scale, scope and skill and enables us to extend our reach in the grocery store by over 10 shelf stable and refrigerated food categories. Importantly, the combination will also strengthen our ability to support our customers' efforts to build their corporate brands and offer consumers the best combination of choice and value.”