OAK BROOK, Ill., USA – TreeHouse Foods, Inc. announced that it has completed its acquisition of Harris Tea for approximately $205 million. “The acquisition of Harris Tea is a good use of our balance sheet strength, bringing a fast-growing, margin-accretive business into TreeHouse Foods, and giving us an immediate leadership position in private label tea,” said TreeHouse Foods Chairman, CEO and President Steve Oakland.
“Harris Tea’s capabilities in tea sourcing, blending and packing, as well as its scale, industry expertise, and customer relationships, fit our strategy well.”
TreeHouse Foods funded the acquisition of Harris Tea primarily with cash on hand and expects the acquisition to be accretive to revenue and profitability in 2025. As previously disclosed, the purchase price equals roughly 8.5x trailing-twelve-month adjusted EBITDA, or 6.5x net of synergies and the net present value of future tax benefits.
TreeHouse Foods is reiterating its 2024 full-year guidance, including the expectation of sequential improvement in volume growth and profit margin in the fourth quarter.
About TreeHouse Foods
TreeHouse Foods, Inc. is a leading private brands snacking and beverage manufacturer in North America. Our purpose is to engage and delight – one customer at a time.
Through our customer focus and category experience, we strive to deliver excellent service and build capabilities and insights to drive mutually profitable growth for TreeHouse and for our customers.
Our purpose is supported by investment in depth, capabilities and operational efficiencies which are aimed to capitalize on the long-term growth prospects in the categories in which we operate.
