TreeHouse Foods acquires Protenergy for $150m

US-based food manufacturer TreeHouse Foods has completed the acquisition of Protenergy Natural Foods from Whitecastle Investments, Whitecap Venture Partners and others, for around C$170m ($150m) in cash.

Headquartered in Ontario, Canada, Protenergy produces food and beverage products such as carton and recart broth, soups and gravies for private label and corporate brands, and also serves as a co-manufacturer of national brands.

The company operates a second production facility in Cambridge, Maryland, US. Protenergy reported sales of about C$130m ($119.7m) for the twelve months ended 31 December 2013.

TreeHouse Foods noted that the transaction is expected to have around C$0.05 ($0.04) to C$0.07 ($0.06) impact on 2014 earnings per share and to add about C$0.11 ($0.10) to C$0.14 ($0.13) in EPS in 2015.

The company financed the transaction under its existing credit facility.

When the agreement was announced in April, TreeHouse Foods chairman, president and CEO Sam Reed said that the acquisition of Protenergy would expand the company’s existing packaging capabilities and enable it to offer a full range of soup products.

"The addition of Protenergy is also expected to leverage our R&D capabilities in the evolution of shelf stable liquids from cans to cartons," he added.

TreeHouse produces products such as non-dairy powdered creamers and sweeteners, pickles and related products, aseptic sauces, and liquid non-dairy creamer.