Hillshire Brands Co (NYSE:HSH) and TreeHouse Foods Inc. (NYSE:THS) agreed to acquire Van’s Natural Foods from Catterton Partners, a consumer focused private equity firm for $165 million.
Acquisition expands Hillshire’s presence in frozen category
Sean Connolly, president and CEO of Hillshire Brands Co (NYSE:HSH) said Van’s Natural Foods is a terrific addition to his company’s portfolio because it will expand its presence in the frozen category and it will give Hillshire Brands a proven health and wellness brand.
Van’s Natural Foods is a leading better-you-food brand with great taste, nutrition, simple, clean ingredients and all-family appeal across multiple product lines in the frozen breakfast and snack foods. Its net revenue is estimated to be around $60 million this year.
Hillshire Brands Co (NYSE:HSH) plans to integrates Van’s Natural Foods in its retail segment along with its well-known brands such as Jimmy Dean Hillshire Farms and Ball Park. The management of Van’s Natural Foods will remain in their positions to oversee its business operations.
Eric Kufel, CEO of Van’s Natural Foods said, “As a leader in branded foods including breakfast products, Hillshire Brands is an ideal strategic partner for Van’s. Our positioning in the large and growing wellness consumer lifestyle segment is a perfect complement to Hillshire Brands’ product portfolio.”
On the other hand, Marc Magliacano, a partner at Catterton, said, “We are proud of the brand and distinctive market positioning that we and the Van’s management team have created over the past few years. This transaction is a win for all parties involved and we are confident and excited that under Hillshire’s ownership, Van’s will continue to experience significant growth and capitalize on new opportunities.”
TreeHouse to buy Protenergy Natural Foods
Meanwhile TreeHouse Foods, Inc. (NYSE:THS) announced its decision to purchase Proternergy Natural Foods from Whitecastle Investments Limited, Whitecap Ventures Partners, and other affiliates for CAD$170 million in cash.
Protenergy Natural Foods is one of the leading developer and manufacturer of premium quality food and beverage products, namely private label broth, soups and gravies in the food industry.
Move expands TreeHouse’s packaging capabilities
TreeHouse Foods, Inc. (NYSE:THS) estimated that the acquisition will have an impact of $0.05 to $0.07 earnings per share on its 2014 financial results and will add approximately $0.11 to $0.14 in EPS in 2015. The company plans to finance the deal trough borrowings and existing credit facility, and expects to complete the transaction in the second quarter of this year.
Sam K. Reed, chairman, president and CEO of TreeHouse Foods, Inc. (NYSE:THS) said, “The acquisition of Protenergy is expected to expand our existing packaging capabilities and enables us to offer customers a full range of soup products, both wet and dry. The addition of Protenergy is also expected to leverage our R&D capabilities in the evolution of shelf stable liquids from cans to cartons.”
