TreeHouse Foods Announces Acquisition of Private Tea Company for $205MTreeHouse Foods Announces Acquisition of Private Tea Company for $205M

TreeHouse Foods Inc. has signed a definitive agreement to acquire certain subsidiaries that operate the private brand tea business of Anaheim, CA-based Harris Freeman & Co., a US leading private brand tea manufacturer, for approximately $205 million.

"The acquisition of Harris Tea strengthens our competitive positioning in the fast-growing tea category and adds unique blending and sourcing capabilities that customers desire, building upon TreeHouse Foods' category leadership, enhancing our position through additional depth and scale," said Steve Oakland, chairman, CEO, and president. "This acquisition aligns with our long-term strategy to build capabilities in our higher-growth, higher-margin categories," he added.

The acquisition includes Harris Tea's manufacturing facilities in Moorestown, NJ and Marietta, GA, and TreeHouse Foods will welcome approximately 300 Harris Tea team members. The acquisition of Harris Tea will provide vertical integration across the company's existing tea business, and will be accretive to the Company's overall growth and margins.

"The tea category presents significant opportunity for future growth," said Kevin Shah, co-CEO of Harris Freeman. "It was clear that TreeHouse Foods would provide a great fit for our next chapter of growth, given its depth of capabilities, scale, industry expertise, and customer relationships, and I am confident we will maintain our upward trajectory as a result of this transaction."

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The company has agreed to a purchase price that equals roughly 8.5x trailing-12-month adjusted EBITDA, or 6.5x net of synergies and the net present value of future tax benefits. This transaction is expected to close in the first quarter of 2025.

TreeHouse Foods was recently in the news in September due to a major recall of frozen waffles, Belgian waffles, and pancakes it manufacturers under various brand names.