TreeHouse Foods sells snack-bar business to US peer John B. Sanfilippo & Son
TreeHouse Foods has recently completed the sale of its snack-bar business to John B. Sanfilippo & Son, a US-based company. The deal, valued at approximately $63 million, involved the transfer of a factory in Lakeville, Minnesota that specializes in producing private-label snack bars.
This strategic move aligns with TreeHouse’s focus on becoming a leading private label leader in high-growth and high-margin segments. Steve Oakland, CEO of TreeHouse, stated that the sale of their snack-bar business is another example of their strategy in action.
John B. Sanfilippo & Son also expressed their excitement about the acquisition, describing it as a significant advancement in their strategy within the expanding snack bar category.
Over the past 18 months, TreeHouse has been reshaping its business to prioritize more profitable product categories. In August of last year, the company sold a substantial portion of its meal preparation business for $950 million to Investindustrial, a European investment group.
TreeHouse expects the snack-bar business to have a limited impact on their adjusted EBITDA for fiscal year 2023. However, their recent acquisition of a small vendor of private-label pretzels for $14 million in May demonstrates their efforts to meet evolving consumer demands.
Recognizing the surge in consumer demand, TreeHouse announced in February of this year that it would consider making acquisitions to expand its capacity. Although the company reported a profit in Q4 of 2022, it acknowledged challenges in meeting the heightened demand from budget-conscious consumers opting for more affordable alternatives.
As for John B. Sanfilippo & Son, they anticipate that this deal will contribute approximately $105-120 million in net sales to their business in the 2024 financial year. The acquisition allows them to offer a comprehensive range of snack bars to their private label customers, including fruit and grain, crunchy, protein, sweet and salty, and chewy bars.
Both companies are focused on leveraging their core competencies to drive growth and maximize performance within the highly competitive food and beverage industry.