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.
Investor Relations of TreeHouse Foods, Inc., +1-708-483-1300 Ext. 1344