TreeHouse Foods Inc. (NYSE: THS) is set to acquire Canadian drink company Associated Brands GP Corp. from Canadian private equity firm TorQuest Partners Inc. for roughly $180 million.
The Oak Brook, Ill.-based buyer was the winning bidder in a sale process run by BMO Capital Markets Corp. Headquartered in Ontario, Associated Brands manufactures and supplies to supermarkets and other retailers a variety of dry blend food products, including flavored drink mixes, such as iced tea and hot chocolate, as well as dessert mixes, soups, bouillon and sweeteners.
TorQuest purchased the company in May 2007 for an undisclosed price.
The deal will be financed by TreeHouse’s existing $750 million credit facility.
TreeHouse tapped Wells Fargo to advise the company on buy-side matters.
The deal comes at a busy time for food and beverage M&A, with recent acquisitions by B&G Foods, Investcorp (which owns SourceMedia, the publisher of Mergers & Acquisitions) and Kameda. For more on M&A trends in the food & beverage sector, check back for the upcoming September issue of Mergers & Acquisitions.
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