WESTCHESTER, ILL. — TreeHouse Foods, Inc. has entered an agreement to acquire S.T. Specialty Foods, a company of Windjammer Capital Investors, for $180 million in cash plus and additional $15 million in cash if the company achieves certain earnings targets for the 12 monhts ended Dec. 31, 2010.
S.T. Specialty Foods is a private label macaroni and cheese, skillet dinners, side dishes and salads manufacturer with sales of about $100 million. The company is based in Brooklyn Park, Minn.
“We are delighted to acquire a business that expands our portfolio with the leading private label manufacturer of macaroni and cheese and skillet dinners,” said Sam K. Reed, chairman and chief executive officer. “S.T. has had consistent growth since its inception and will not only add to our broad product portfolio for the retail grocery channel, but it will also give us the opportunity to expand our offerings into the lunch and dinner meal occasions.”
Dale Schulz, president of S.T. Specialty Foods, added, “The acquisition will align us with one of the fastest growing food companies in North America. We believe TreeHouse is an excellent fit with not only our products but also with the culture we have established here at S.T.”
This will be the company’s second acquisition of the year as TreeHouse completed an acquisition of Sturm Foods, Inc. for $660 million in March.