TreeHouse Foods has entered into an agreement to sell its snacks division to Atlas Holdings in a deal worth $90 million.
Described by TreeHouse as a “leader in the nuts and trail mix categories”, the snacks unit employees more than 800 people and is expected to generate net sales of approximately $670 million in 2019.
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. The Minneapolis plant, and the manufacturing-related employees located there, are not included in the transaction.
TreeHouse said it plans to use the net proceeds of the sale to pay down debt.
“The sale of the snacks division is a key step in optimising 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.”
Headquartered in Greenwich, Connecticut, Atlas owns and operates 19 manufacturing and distribution businesses, which collectively employ more than 17,000 people at over 150 facilities worldwide.
Michael Sher, partner at Atlas Holdings, said: “This snacks business will be a welcome addition to the Atlas family of manufacturing and distribution companies.
“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.”
The deal comes two months after TreeHouse entered into an agreement to sell its ready-to-eat cereal business to Post Holdings. It is expected both transactions will close in the third quarter of this year.
Local industry stakeholders under Food Drink Ireland (FDI) have called for targeted support measures in the sector that will help businesses stay buoyant during the transitional period.
Diageo has announced that the company’s CFO Kathryn Mikells will leave the business later this year and will be replaced by Lavanya Chandrashekar.
Schlosberg – who has resigned his positions as president, CFO, COO and secretary of Monster Beverage – will serve as co-CEO alongside Rodney C. Sacks.