Treehouse Foods Closes Buyout Of Farmer Brothers' Certain Assets

Treehouse Foods, Inc. THS disclosed the acquisition completion of certain assets from Farmer Brothers Company FARM for $100 million.

In particular, THS bought FARM's Northlake, Texas, coffee facility and non-Direct Store Delivery coffee business. 

The acquisition will boost THS' single-serve pod and ready-to-drink coffee businesses and enhance its end-to-end private-label coffee offerings.

THS financed the acquisition through its revolving credit facility and acquired around $30 million of inventory. 

With the acquisition closure, THS plans to retain around 180 FARM employees at the facility.

Steve Oakland, Chairman, CEO, and President, said, "Acquiring the Northlake, Texas facility enables us to drive greater category depth through green coffee purchasing, roasting, grinding, flavoring and assortment – and represents an exciting step forward as we strengthen our strategic capabilities as a focused, private label snacking and beverages leader. By becoming more vertically integrated in coffee, we are better positioned to drive mutually profitable growth for our customers and deliver greater value to our shareholders."

As of March 31, 2023, THS held $14.63 million in cash and equivalents.

Last month, THS reiterated its Q2 outlook and provided an update on 2023 guidance. 

Price Action: THS shares closed lower by 1.24% at $50.38 on Friday.