OAK BROOK, Ill. — Food manufacturer TreeHouse Foods has entered into a definitive agreement to acquire Cains Foods, a privately owned manufacturer of shelf stable mayonnaise, dressings and sauces.
Cains is based in Ayer, Mass., and generates approximately $80 million in annual revenue. The company employs approximately 100 people. Its product portfolio offers retail and foodservice customers an assortment of packaging sizes, sold under both private label store brands and the Cains, Naturally Delicious and Olde Cape Cod brands.
TreeHouse has agreed to pay $35 million in cash for the business, subject to adjustments for working capital and taxes. The transaction is expected to have a neutral impact on TreeHouse's earnings in 2013, but is expected to positively impact 2014 earnings by approximately $0.05 per share. The transaction is expected to close within 30 days, subject to the satisfaction of customary closing conditions, and will be financed through borrowings under TreeHouse's existing $750 million credit facility.
"Cains has a nearly 100-year tradition of manufacturing high quality products, and this is a very good business with experienced management and a dedicated team of employees," said Sam K. Reed, chairman, president and CEO of TreeHouse Foods. "Cains will be a great fit within the TreeHouse family, rounding out our industry leading assortment of private label pourable and spoonable dressings."
TreeHouse primarily services the retail grocery and foodservice distribution channels. Its products include non-dairy powdered creamers, private label canned soups, refrigerated and shelf stable salad dressings and sauces, powdered drink mixes and single serve hot beverages, hot cereals, macaroni and cheese, skillet dinners, Mexican sauces, jams and pie fillings, pickles and related products, aseptic sauces and liquid non-dairy creamer.