TreeHouse to gain assets of E.D. Smith Income Fund

by Staff
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WESTCHESTER, ILL. — TreeHouse Foods Inc. entered into an agreement with the E.D. Smith Income fund to acquire substantially all of the assets of the fund for about $203 million. The transaction will be financed from borrowings under TeeHouse’s $500 million credit facility.

The company believes the transaction will allow unitholders to receive cash up to C$9.15($8.55).

The assets consist of the outstanding shares of E.D. Smith & Sons, Ltd., all the outstanding shares of E.D. Smith & Sons GP Ltd, certain indebtedness of E.D. Smith & Sons Ltd., and all of the LP units of E.D. Smith & Sons LP.

"We have conducted an extensive review of the strategic alternatives available to the E.D. Smith Income Fund and believe this deal provides our unitholders with a fair price for the business and a material premium to the recent trading levels of the units," said Jack Scott, chairman of the E.D. Smith Income Fund.

The transaction is expected to close near the end of the third quarter, and the Fund will set a date for a meeting of unitholders to approve the terms of the transaction, which is expected to be held by the end of August.

"E.D. Smith is a great company, and we are excited about the category and geographic opportunities it brings to TreeHouse," said Sam K. Reed, chairman and chief executive officer of TreeHouse.

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