TreeHouse Foods buys stake worth $242.5m in Riviana Foods pasta business

US-based packed food and beverage manufacturer Treehouse Foods has concluded the acquisition of a majority stake in a US-branded pasta portfolio from Riviana Foods in a $242.5m cash deal.

The deal was first announced in November.

TreeHouse Foods acquired regional brands such as Skinner, No Yolks, American Beauty, Creamette, San Giorgio, Prince and Light ‘n Fluffy, Mrs Weiss’, Wacky Mac, P&R Procino-Rossi and New Mill.

The deal also includes the St Louis manufacturing facility, which employs nearly 90 people.

TreeHouse Foods president and CEO Steve Oakland said: “I want to welcome our newest members of the pasta team to TreeHouse.

“This acquisition represents a wonderful opportunity to not only strengthen our portfolio but bring together strong industry talent, which will enable us to better serve our customers and to deliver greater value to our shareholders.”

TreeHouse said that it funded the acquisition, related fees and expenses with cash on hand.

It anticipates that the acquisition will be accretive by $0.20 to $0.30 per share in the first full year.

Riviana Foods has not included Ronzoni national brand or manufacturing plants located in Virginia and California.

In February, Treehouse Foods initiated several organisational changes to optimise its business.

The company said that it will restructure into two divisions, snacking and beverages, and meal preparation, from the first quarter of 2020.

It based its current division structure of baked goods, beverages and meal solutions on product categories.

TreeHouse Foods’ organisational changes will allow the company to better allocate resources to meet retail customers’ expectations.