WESTCHESTER, Ill., April 23, 2007 /PRNewswire-FirstCall via COMTEX News Network/ -- TreeHouse Foods,
Inc. (NYSE: THS) today announced it has entered into a definitive agreement
with Silver Ventures, Inc., to acquire San Antonio Farms, a San Antonio, Texas
based maker of premium quality Mexican sauces including salsa, picante, cheese
dip, enchilada sauce and taco sauce. San Antonio Farms sells to retail
customers primarily under private label arrangements and to food service
customers under the San Antonio Farms label.
TreeHouse has agreed to pay $88.5 million in cash for the business, plus
an adjustment for working capital. The transaction is expected to close
within 45 days, subject to satisfaction of customary closing conditions. The
transaction will be financed through borrowings under the Company's existing
$500 million credit facility. "We are very excited to add Mexican sauces to
our family of products," commented Sam K. Reed, Chairman and Chief Executive
Officer. "Salsa, picante and other Mexican sauces are experiencing great
growth and private label Mexican sauces are growing even faster than the total
category. San Antonio Farms is a well managed company with premium products,
a history of profitable growth with talented and dedicated employees. The
transaction will be neutral to THS earnings over the balance of the year, but
is expected to add approximately $0.05 per share to earnings in 2008."
For the 12 months ending March 30, 2007 San Antonio Farms had revenues of
$45.3 million. For the five years ended December 31, 2006 the company
enjoyed a compound annual growth rate of 15.2%. The company manufactures all
of its products at its processing and distribution facility in San Antonio,
Texas where it employs approximately 100 people. "As a New York Stock
Exchange company with a national focus, TreeHouse will be a good fit for San
Antonio Farms and will help the company grow further," commented Jack Kelly,
President of San Antonio Farms. The San Antonio Farms headquarters will
remain in San Antonio. TreeHouse does not anticipate any significant changes
to the existing operations.
Brown, Gibbons Lang & Company is acting as financial advisor to TreeHouse
in connection with the transaction. Lincoln International is advising San
Antonio Farms and Silver Ventures on the transaction.
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; private label soup and infant feeding
products, 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.
ABOUT SAN ANTONIO FARMS
San Antonio Farms is a producer of Mexican sauces for the retail,
foodservice and industrial markets. It sells its products under its own
brands, under retailer's store brand names, and as custom recipes for
restaurant chains and foodservice distributors.
FORWARD LOOKING STATEMENTS
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," "expects," "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 Form 10-K for the year ended December 31, 2006 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 evaluation 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, TreeHouse Foods, Inc., +1-708-483-1300 Ext. 1343