TreeHouse Foods Inc. (NYSE: THS)  agreed to buy ConAgra Foods Inc.’s (NYSE: CAG) private-label unit for $2.7 billion, a deal that will it the largest U.S. maker of store-brand groceries and test its ability to turn around an ailing business.

The purchase will reduce earnings per share by as much as 35 cents a share the first year after the acquisition, then add as much 70 cents a share to profit the second year, Oak Brook, Illinois-based TreeHouse said in a statement Monday. The acquisition is expected to close in the first quarter, the company said.

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