TreeHouse Foods announced that it has completed the acquisition of the majority of Ebro’s Riviana Foods US branded pasta business for USD242.5m in cash.
TreeHouse normalized revenue for the acquired pasta business to be between USD170 and USD180m. As the acquisition was structured as an asset purchase, TreeHouse expects to realize approximately USD40m in cash tax benefits on a net present value basis, according to a press release.
“I want to welcome our newest members of the pasta team to TreeHouse,” Steve Oakland, CEO, and president of TreeHouse Foods said. “This acquisition represents a wonderful opportunity to not only strengthen our portfolio but to bring together strong industry talent which will enable us to better serve our customers and to deliver greater value to our shareholders.”
The acquisition included the following regional pasta brands: Skinner, No Yolks, American Beauty, Creamette, San Giorgio, Prince and Light ‘n Fluffy, Mrs. Weiss’, New Mill, P&R Procino-Rossi, and Wacky Mac, as well as the St. Louis manufacturing facility, which employs approximately 90 people.