Illinois-based food manufacturer TreeHouse Foods, Inc. (THS - Free Report) has completed the acquisition of privately-owned Cains Foods for $35 million. The deal was announced on Jun 24, 2013 and is expected to boost TreeHouse’s earnings by 5 cents per share in 2014 with no major impact on 2013 earnings.
Massachusetts-based Cains manufactures mayonnaise, dressings and sauces. In addition, the company sells private label store brands as well as Cains, Naturally Delicious and Olde Cape Cod brands to leading food service distributors, national chains and retailers. The deal is thus a strategic fit for TreeHouse, which primarily serves the retail grocery and foodservice channels. Cains’ popular brands will also enhance TreeHouse’s product portfolio, which includes pickles and related products; non-dairy powdered coffee creamer; and other food products including aseptic sauces, refrigerated salad dressings, and liquid non-dairy creamer.
Some recent acquisitions by TreeHouse include – the Aseptic cheese and pudding business from Minnesota-based dairy marketing cooperative Associated Milk Producers Inc. in Nov 2012 and Atlanta-based food company, Naturally Fresh, Inc., in the second quarter of 2012. These acquisitions played an important role in pulling up the company’s revenues in the first quarter of 2013, results of which were announced in May this year.
The company appointed Harry J. Walsh as the new Executive Vice President of the Acquisitions Integration unit for TreeHouse, which will help the company to expand into new categories and markets.
TreeHouse carries a Zacks Rank #3 (Hold). Other stocks in the food business that are currently doing well and are worth considering include Flower Foods Inc. (FLO - Free Report) , Omega Protein Corp. and B&G Foods Inc. (BGS - Free Report) , all carrying a Zacks Rank #1 (Strong Buy).