Illinois-based food manufacturer
TreeHouse Foods, Inc.
) has completed the acquisition of privately-owned Cains Foods
for $35 million. The deal was announced on Jun 24, 2013 and is
expected to boost TreeHouse's earnings by 5 cents per share in
2014 with no major impact on 2013 earnings.
Massachusetts-based Cains manufactures mayonnaise, dressings
and sauces. In addition, the company sells private label store
brands as well as Cains, Naturally Delicious and Olde Cape Cod
brands to leading food service distributors, national chains and
retailers. The deal is thus a strategic fit for TreeHouse, which
primarily serves the retail grocery and foodservice channels.
Cains' popular brands will also enhance TreeHouse's product
portfolio, which includes pickles and related products; non-dairy
powdered coffee creamer; and other food products including
aseptic sauces, refrigerated salad dressings, and liquid
Some recent acquisitions by TreeHouse include - the Aseptic
cheese and pudding business from Minnesota-based dairy marketing
cooperative Associated Milk Producers Inc. in Nov 2012 and
Atlanta-based food company, Naturally Fresh, Inc., in the second
quarter of 2012. These acquisitions played an important role in
pulling up the company's revenues in the first quarter of 2013,
results of which were announced in May this year.
The company appointed Harry J. Walsh as the new Executive Vice
President of the Acquisitions Integration unit for TreeHouse,
which will help the company to expand into new categories and
TreeHouse carries a Zacks Rank #3 (Hold). Other stocks in the
food business that are currently doing well and are worth
Flower Foods Inc.
Omega Protein Corp.
B&G Foods Inc.
), all carrying a Zacks Rank #1 (Strong Buy).
B&G FOODS CL-A (BGS): Free Stock Analysis
FLOWERS FOODS (FLO): Free Stock Analysis
OMEGA PROTEIN (OME): Free Stock Analysis
TREEHOUSE FOODS (THS): Free Stock Analysis
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