ELGIN, ILL. — John B. Sanfilippo & Son, Inc. has reached an agreement to acquire certain snack bar assets from TreeHouse Foods, Inc. for approximately $63 million. The transaction includes a manufacturing facility located in Lakeville, Minn., as well as certain customer relationships.
“This acquisition significantly accelerates our strategy within the growing snack bar category and diversifies our product offerings,” said Jeffrey T. Sanfilippo, chief executive officer of John B. Sanfilippo & Son. “We will be able to offer our private label customers a complete portfolio of snack bars, including fruit and grain, crunchy, protein, sweet and salty and chewy bars that complement our internally developed nutrition bars.
“We are excited about the opportunity to work with the talented team of associates in the Lakeville facility to grow the bar business together. We have a decades-long history of operational excellence and will implement a plan to integrate the facility and business into our current operations. In doing so, we will focus on our core operational competencies in the snack foods space, our consumer insights and history of innovative research and development to maximize its performance.”
John B. Sanfilippo said the acquisition of TreeHouse Foods’ bars business is expected to add approximately $105 million to $120 million in incremental net sales during the remainder of the 2024 fiscal year and is expected to be dilutive to earnings per share for the next 12 to 15 months after the transaction closes.
TreeHouse Foods has owned the Lakeville plant since its acquisition of the private brands business of Conagra Foods in 2016. The facility makes a range of private label snack bar products, including fruit and grain, chewy, crunchy and protein bars.
Commenting on the sale, TreeHouse Foods said it did not expect the snack bars business to contribute positive adjusted EBITDA in fiscal year 2023.
“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,” said Steve Oakland, chairman, president and CEO of TreeHouse Foods. “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.”John B. Sanfilippo & Son is a processor, packager, marketer and distributor of snack bars, dried cheese and nut and dried-fruit based products that primarily are sold under the Fisher, Orchard Valley Harvest, Squirrel Brand, Southern Style Nuts and Just the Cheese brand names. The company also offers a variety of private brands.