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.
The Coca-Cola Co. has promoted Evguenia (Jeny) Stoichkova to president of global ventures, effective Jan. 1, 2023. Ms. Stoichkova joined Coca-Cola Bulgaria in 2004 and was most recently the president of the company’s Eurasia & Middle East division, a role she has held since 2021.
US-based Perfect Day, is partnering with Onego Bio, which specializes in creating animal-free eggs, aiming to accelerate the timeline to bring the eggs to the market. The business, with the use of its technology, plans to commercialize animal-free ovalbumin, the most abundant egg white protein extracted through precision fermentation.
Food waste costs the EU €143 billion per year (US$141.7 billion), with a report by Feedback EU raising the alarm of how it’s vital to reduce waste from farm to fork 50% by 2030 and the only way this will be achieved is by enforcing a mandatory directive forcing the food industry to do better and retailers to pay a tax of food waste.