TreeHouse Foods announced that it has signed a definitive agreement to acquire certain subsidiaries that operate the private brand tea business of Harris Freeman & Co, a leading private brand tea manufacturer in the U.S., for about $205 million, subject to customary purchase price adjustments.
The deal includes Harris Tea’s manufacturing facilities in Moorestown, NJ and Marietta, GA. And TreeHouse Foods will welcome about 300 Harris Tea team members. And the deal for Harris Tea will provide vertical integration across the Company’s existing tea business and will be accretive to the Company’s overall growth and margins.
This deal is expected to close in the first quarter of 2025 and will be funded primarily with cash on hand. It fully satisfies the company’s obligation under its bond indenture to either reinvest certain proceeds from the previously completed Meal Preparation sale or retire debt.
Wells Fargo Securities served as Harris Tea’s exclusive financial advisor and Holland & Knight served as legal counsel. Gibson and Dunn served as legal counsel to TreeHouse Foods, Inc.
KEY QUOTES:
“The acquisition of Harris Tea strengthens our competitive positioning in the fast-growing tea category and adds unique blending and sourcing capabilities that customers desire, building upon TreeHouse Foods’ category leadership, enhancing our position through additional depth and scale. This acquisition aligns with our long-term strategy to build capabilities in our higher-growth, higher-margin categories,” he added.
- Steve Oakland, Chairman, Chief Executive Officer, and President
“The tea category presents significant opportunity for future growth. It was clear that TreeHouse Foods would provide a great fit for our next chapter of growth, given its depth of capabilities, scale, industry expertise, and customer relationships, and I am confident we will maintain our upward trajectory as a result of this transaction.”
- Kevin Shah, Co-CEO of Harris Freeman
