TreeHouse Foods said it had agreed with private equity firm TorQuest Partners and other shareholders to purchase Associated Brands GP Corporation. TreeHouse revealed that it would be paying an estimated USD 180 million in cash for Associated Brands in a deal that would be completed by the third quarter of this year. Associated Brands is a maker of special teas, powdered drinks and sweeteners headquartered in Ontario, Canada with production facilities in British Columbia and Ontario in Canada as well as in Medina in New York.
The buy will bolster the retail presence of TreeHouse Foods in the dry grocery goods department. It will be adding Associated Brands' specialty teas to its existing single serve coffee offered to the market. TreeHouse Foods Chairman, President and Chief Executive Officer Sam K. Reed said he was pleased that the drinks provider is now part of their portfolio. "We see significant opportunities to expand Associated Brands' sales, while leveraging their strong customer relationships in both retail and industrial channels," he added.
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