TreeHouse to Buy Protenergy for $154 Million to Add SoupsKevin Orland
TreeHouse Foods Inc., a maker of house-brand foods for retailers, agreed to buy Protenergy Natural Foods for about C$170 million ($154 million) to add soups and broths.
The cash deal with Protenergy’s owners, including Whitecastle Investments Ltd., is expected to close in the second quarter and will be funded by borrowing under an existing credit facility, Oak Brook, Illinois-based TreeHouse said today in a statement.
TreeHouse is gaining a maker of broths, soups and gravies sold both under private labels and for corporate brands. The company has about 300 employees and facilities in Richmond Hill, Canada, and Cambridge, Maryland. The acquisition will add $200 million in revenue and boost per-share earnings this year by 5 cents to 7 cents.
TreeHouse rose 1.3 percent to $73.07 at the close in New York. The shares have gained 6 percent this year, compared with a 1.3 percent gain for the Standard & Poor’s 500 Index.