TreeHouse Foods, Inc. Completes the Purchase of Private Label Soup and Infant Feeding Businesses From Del Monte Foods Company
WESTCHESTER, Ill., April 24, 2006 /PRNewswire-FirstCall via COMTEX News Network/ -- TreeHouse Foods, Inc. (NYSE: THS) today announced it has completed its purchase of the private label soup and infant feeding businesses of Del Monte Foods Company (NYSE: DLM). The soup business is the market leader in the private label wet soup category. The Nature's Goodness(R) infant feeding business is the #3 brand in the U.S. infant feeding category. As announced on March 2, 2006 TreeHouse agreed to pay $268 million in cash for the businesses, plus an adjustment for working capital. The soup business manufactures and distributes condensed soup, ready-to-serve soup, broth and gravy, primarily to supermarkets and mass merchandisers for sale under the retailer's own label. The business has an estimated 70% volume share of private label soup, which in turn has about a 10% penetration of the wet soup category. "The purchase of the private label soup and infant feeding business is a great fit for our go to market strategy. We see opportunities to create operational efficiencies and to deliver top line growth due to our focus on private label foods," said Sam K. Reed, Chairman and Chief Executive Officer.
Soup and infant feeding products are manufactured at facilities in Pittsburgh, PA and Mendota, IL. TreeHouse has acquired the Pittsburgh, PA manufacturing facility and distribution center and entered into a long-term lease agreement at Del Monte's Mendota, IL manufacturing facility. The businesses' headquarters will remain in Pittsburgh, PA. TreeHouse does not anticipate any significant changes to the existing operations.
About TreeHouse Foods
TreeHouse is a food manufacturer servicing primarily the retail grocery and foodservice channels. Its products include pickles and related products; non-dairy powdered coffee creamer; and other food products including aseptic sauces, refrigerated salad dressings, and liquid non-dairy creamer. TreeHouse believes it is the largest manufacturer of pickles and non-dairy powdered creamer in the United States based on sales volume.
This press release contains "forward-looking statements." Forward-looking statements include all statements that do not relate solely to historical or current facts, and can generally be identified by the use of words such as "may," "should," "could," "expect," "seek to," "anticipates," "plans," "believes," "estimates," "intends," "predicts," "projects," "potential" or "continue" or the negative of such terms and other comparable terminology. These statements are only predictions. The outcome of the events described in these forward-looking statements is subject to known and unknown risks, uncertainties and other factors that may cause the company or its industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievement expressed or implied by these forward-looking statements. TreeHouse's Annual Report on Form 10K for the fiscal year ended December 31, 2005 discusses some of the factors that could contribute to these differences. 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 presentation. The company 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.
SOURCE TreeHouse Foods, Inc.
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