OAK BROOK, ILL. — TreeHouse Foods on Dec. 11 completed the acquisition of several regional pasta brands from Riviana Foods, a business unit of Ebro Foods, Madrid, Spain, for $242.5 million.
The acquisition included the following regional pasta brands: Skinner, No Yolks, American Beauty, Creamette, San Giorgio, Prince and Light ‘n Fluffy, Mrs. Weiss’, New Mill, P&R Procino-Rossi and Wacky Mac, as well as a manufacturing plant in St. Louis that employs approximately 90 people.
“I want to welcome our newest members of the pasta team to TreeHouse,” said Steven T. Oakland, president and chief executive officer of TreeHouse Foods. “This acquisition represents a wonderful opportunity to not only strengthen our portfolio, but to bring together strong industry talent, which will enable us to better serve our customers and to deliver greater value to our shareholders.”
TreeHouse said it expects the acquisition to be accretive by 20¢ to 30¢ per share in the first full year, while normalized revenue for the acquired pasta business is expected to be between $170 million and $180 million, and normalized EBITDA is projected to be between $25 million and $30 million, pre-synergies.
TreeHouse also said it expects to realize approximately $40 million in cash tax benefits on a net present value basis because the acquisition was structured as an asset purchase.
Back in November when the transaction was first announced, Mr. Oakland said the addition of Riviana Foods’ brands would give the company leverage in terms of geographic reach and increased volumes. TreeHouse’s pasta businesses are located in the western and eastern portions of the United States, and the acquired businesses will fill a large swath of the country.
“It's against this backdrop that we believe the acquisition of the majority of Ebro's Riviana regional pasta businesses will dovetail with our strengths and allow us to drive even greater operating leverage not only as we navigate the pandemic, but as we look to the future,” Mr. Oakand said at the time.