TreeHouse Foods has finalized a firm agreement to sell its manufacturing facility and snack bars business situated in Lakeville, Minnesota, USA, to John B. Sanfilippo & Son for an approximate sum of $63 million.
Headquartered in Elgin, Illinois, John B. Sanfilippo & Son operates as a processor, packager, marketer, and distributor of snack bars, dried cheese, nut-based, and dried-fruit-based products.
This facility, which has been a part of TreeHouse Foods since 2016, manages the manufacturing of a range of private-label snack bar products, encompassing protein bars and fruit and grain bars.
As per the company’s statement, the snack bars business was not projected to generate a positive adjusted EBITDA in fiscal year 2023.
Steve Oakland, Chairman, President and CEO of TreeHouse Foods, said, “The sale of our Lakeville facility and snack bars business is another example of our strategy in action to be a focused private label leader in high-growth and high-margin categories. Importantly, we believe the business and its talented colleagues will be well positioned under John B. Sanfilippo & Son’s ownership. We remain focused on deploying our capital in a manner that supports our long-term growth targets and enhances value creation for our shareholders.”
Upon the conclusion of the transaction, the existing private-label snack bars business, customer relationships, and the workforce based in Lakeville will transfer to John B. Sanfilippo & Son.
The transaction, contingent on standard closing conditions, is anticipated to be finalized within a 30-day window.