Private label giant completes $860 million deal for nut, snack mix maker.
TreeHouse Foods, Inc., Oak Brook, Ill., said it completed its previously announced acquisition of Flagstone Foods, the Minneapolis provider of private label healthy snacks. Flagstone Foods reported sales of approximately $697 million for the fiscal year ended December 28, 2013. TreeHouse paid Gryphon Investors and other shareholders $860 million in cash for the business, subject to an adjustment for working capital, and financed the transaction through a combination of borrowings under its existing credit facility and a $374 million equity issuance.
Flagstone Foods purchases, prepares, packages, distributes and sells more than 1,500 branded and private label varieties of snack nuts, trail mixes, dried fruit, snack mixes and other wholesome snacks to major retailers in North America.