OAK
BROOK, Ill., June 7, 2023
/PRNewswire/ -- TreeHouse Foods, Inc. (NYSE: THS) today
announced that it has signed a definitive agreement with Farmer
Brothers Company (Nasdaq: FARM) to acquire its Northlake, Texas, coffee facility and the Farmer Brothers
non-Direct Store Delivery coffee business (referred to as Direct
Ship) for approximately $100 million,
subject to customary purchase price adjustments.
The facility, built in 2017, brings roasting, grinding,
flavoring and blending capabilities to the TreeHouse Foods
portfolio to complement the Company's existing single-serve pod and
ready-to-drink coffee businesses. The acquisition enables TreeHouse
Foods to deliver greater category depth in a world-class,
end-to-end private label coffee offering for its customers.
"The state-of-the-art Northlake
facility strengthens TreeHouse Foods' category depth in coffee as a
focused, private label leader and is consistent with our strategy
to pursue opportunities that drive category growth and deliver
attractive financial returns," said Steve
Oakland, CEO and President of TreeHouse Foods. "As we
continue to execute our long-term growth initiatives, we're pleased
to add new capabilities, particularly in roasting and grinding,
which make us a more vertically integrated coffee manufacturer able
to further penetrate this high growth, high margin category."
Farmer Brothers has historically been a bulk ground coffee
supplier to TreeHouse Foods for its single-serve pods and
ready-to-drink beverages. Following closing, the acquisition is
expected to create greater profit capture in the supply chain.
TreeHouse Foods will also assume select customer relationships and
retain approximately 180 team members from Farmer Brothers to
support operations at the facility.
The transaction is expected to close within the next 60
days.
About TreeHouse Foods
TreeHouse Foods, Inc. is a leading private label food and beverage
manufacturer in North America. Our
purpose is to engage and delight – one customer at a time. Through
our customer focus and category experience, we strive to deliver
excellent service and build capabilities and insights to drive
mutually profitable growth for TreeHouse and our customers. Our
purpose is supported by investment in depth, capabilities and
operational efficiencies, which are aimed to capitalize on the
long-term growth prospects in the categories in which we
operate.
Additional information, including TreeHouse Foods' most recent
statements on forms 10-Q and 10-K, may be found
at treehousefoods.com.
About Farmer Brothers
Founded in 1912, Farmer Brothers is a national coffee roaster,
wholesaler, equipment servicer and distributor of coffee, tea and
culinary products. The company's product lines, include organic,
Direct Trade and sustainably produced coffee. With a robust line of
coffee, hot and iced teas, cappuccino mixes, spices and
baking/biscuit mixes, Farmer Brothers delivers extensive beverage
planning services and culinary products to its U.S.-based
customers. It serves a wide variety of customers, from small
independent restaurants and foodservice operators to large
institutional buyers, such as restaurant, department and
convenience store chains, hotels, casinos, healthcare facilities
and gourmet coffee houses, as well as grocery chains with private
brand coffee and consumer branded coffee and tea products, and
foodservice distributors.
Headquartered in Northlake,
Texas, Farmer Brothers generated
net sales of $469.2 million in fiscal
2022. The company's primary brands include Farmer Brothers, Artisan
Collection by Farmer Brother, Superior, Metropolitan, China Mist
and Boyd's.
FORWARD-LOOKING STATEMENTS
This press release contains
"forward-looking" statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements and other information are based on our beliefs, as well
as assumptions made by us, using information currently available.
The words "believe," "estimate," "project," "expect," "anticipate,"
"plan," "intend," "foresee," "should," "would," "could," and
similar expressions, as they relate to us, are intended to identify
forward-looking statements. Such statements reflect our current
views with respect to future events and are subject to certain
risks, uncertainties, and assumptions. Should one or more of these
risks or uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may vary materially
from those described herein as anticipated, believed, estimated,
expected, or intended. We do not intend to update these
forward-looking statements following the date of this press
release.
Such forward-looking statements, because they relate to future
events, are by their very nature subject to many important factors
that could cause actual results to differ materially from those
contemplated by the forward-looking statements contained in this
press release and other public statements we make. Such factors
include, but are not limited to: risks related to the impact that
the divestiture of a significant portion of our Meal Preparation
Business or any such divestiture might have on the Company's
operations; disruptions or inefficiencies in our supply chain
and/or operations; loss of key suppliers; raw material and
commodity costs due to inflation; labor strikes or work stoppages;
multiemployer pension plans; labor shortages and increased
competition for labor; success of our growth, reinvestment, and
restructuring programs; our level of indebtedness and related
obligations; disruptions in the financial markets; interest rates;
changes in foreign currency exchange rates; collectibility of our
note receivable, customer concentration and consolidation;
competition; our ability to execute on our business strategy; our
ability to continue to make acquisitions and execute on
divestitures or effectively manage the growth from acquisitions;
impairment of goodwill or long lived assets; changes and
developments affecting our industry, including customer
preferences; the outcome of litigation and regulatory proceedings
to which we may be a party; product recalls; changes in laws and
regulations applicable to us; shareholder activism; disruptions in
or failures of our information technology systems; changes in
weather conditions, climate changes, and natural disasters; and
other risks that are set forth in the Risk Factors section, the
Legal Proceedings section, the Management's Discussion and Analysis
of Financial Condition and Results of Operations section, and other
sections of this Quarterly Report on Form 10-Q, our Annual Report
on Form 10-K for the year ended December 31,
2022, and from time to time in our filings with the
Securities and Exchange Commission ("SEC"). You are cautioned not
to unduly rely on such forward-looking statements, which speak only
as of the date made when evaluating the information presented in
this press release. TreeHouse expressly disclaims any obligation or
undertaking to disseminate any updates or revisions to any
forward-looking statement contained herein, to reflect any change
in its expectations with regard thereto, or any other change in
events, conditions or circumstances on which any statement is
based.
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SOURCE TreeHouse Foods, Inc.