Owner of former Heinz plant acquires snack maker
TreeHouse Foods Inc., the owner of the former H.J. Heinz Co. manufacturing plant in the North Side, is acquiring a private-label maker of healthy snacks in an $860 million all-cash deal.
Oakbrook, Ill.-based TreeHouse said the deal to buy Flagstone Foods of St. Paul will increase revenue by $750 million a year and boost earnings by 24 cents to 28 cents a share in the first full year of operation.
The deal is expected to give TreeHouse a foothold in the rapidly growing $7.1 billion healthy snacks category, the company said.
Flagstone, which is owned by private equity firm Gryphon Investors, is one of the largest manufacturers and distributors of trail mix and dried fruit in North America.
It has about 1,365 employees and runs factories in Minneapolis and Roberson, N.C. Its sales last year were $697 million.
TreeHouse is a private-label food maker primarily serving the retail grocery and food service industries.
Its revenue will be about $3.5 billion a year after the closing of the deal, which is expected in the July-September quarter this year.
Alex Nixon is a staff writer for Trib Total Media. He can be reached at 412-320-7928 or firstname.lastname@example.org.
Add Alex Nixon to your Google+ circles.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Starbucks glitch that closed stores shows reliance on registers
- ESPN sues Verizon over unbundling plan for FiOS
- Hog Father’s eatery chain ferries barbecue to workers at gas well pads
- Mixed economy likely means no Fed rate hike soon
- Mylan rejects Teva’s $40 billion takeover bid
- Oil’s rebound pushes up price at gas pumps
- Stocks slide in busy week of quarterly earnings reports
- Guessing approach can result in big bill
- Visa limits vex businesses
- Camera prevalence approaches sci-fi realm
- Experts: If health insurers’ safeguard goes broke, consumers could pay