TreeHouse Foods to buy maker of Mexican sauces
April 23, 2007
by Jeff Gelski
WESTCHESTER, ILL. — TreeHouse Foods, Inc. and Silver Ventures, Inc. have entered into an agreement in which TreeHouse Foods will purchase San Antonio Farms, a maker of Mexican sauces based in San Antonio, for $88.5 million in cash plus an adjustment for working capital.
San Antonio Farms sells its sauces, including salsa, picante, cheese dip, enchilada sauce and taco sauce, to retail customers primarily under label arrangements and to food service customers under the San Antonio Farms label. San Antonio Farms manufactures all its products at its processing and distribution facility in San Antonio. The company had revenues of $45.3 million for the 12 months ended March 30. It recorded an annual growth rate of 15.2% over the past five years ended Dec. 31, 2006.
"We are very excited to add Mexican sauces to our family of products," said Sam K. Reed, chairman and chief executive officer of TreeHouse Foods. "Salsa, picante and other Mexican sauces are experiencing great growth and private label Mexican sauces are growing even faster than the total category."
The acquisition is expected to close within 45 days, Westchester-based TreeHouse Foods said April 23. TreeHouse Foods will finance the acquisition under the company’s existing $500 million credit facility. The acquisition is expected to add about 5c per share to 2006 earnings, Mr. Reed said.