Oak Brook-based Treehouse Foods said it plans to acquire Cains Foods, LP. for approximately $35 million in cash.
Cains Foods, a privately owned, Ayer, Mass.-based manufacturer of shelf stable mayonnaise, dressings and sauces, has approximately $80 million in annual revenue. The Cains' product portfolio offers a wide array of packaging sizes, sold under both private label store brands and the Cains, Naturally Delicious and Olde Cape Cod brands, Treehouse said in a release.
The transaction is expected to have a neutral impact on TreeHouse's earnings in 2013, but is expected to positively impact 2014 earnings by approximately 5 cents per share, the company said. The transaction is expected to close within 30 days, subject to the satisfaction of customary closing conditions, and will be financed through borrowings under TreeHouse's existing $750 million credit facility.
"Cains has a nearly 100 year tradition of manufacturing high quality products, and this is a very good business with experienced management and a dedicated team of employees," said Sam K. Reed, Chairman, President and Chief Executive Officer of Treehouse Foods. "Cains will be a great fit within the Treehouse family, rounding out our industry leading assortment of private label pourable and spoonable dressings."