TreeHouse Foods has struck a deal to acquire Protenergy Natural Foods from private-equity firms Whitecastle Investments and Whitecap Venture Partners for C$170m (US$150m).

Protenergy makes private-label and branded broths, soups and gravies. The company also acts as a co-manufacturer for national brands. TreeHouse said the business was at the “forefront” of the “evolution of carton and recart broth”. The deal includes two manufacturing facilities.

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The company generated sales of around C$130m in the 12 months to the end of December.

TreeHouse said the transaction is expected to close in the back half of this year. The group anticipates the integration of Protenergy’s results will add $0.05-0.07 to earnings per share this year and $0.11-0.15 in 2015, its first full year of inclusion in TreeHouse’s results. The deal will be funded through TreeHouse’s existing credit facilities.

TreeHouse chairman, president and CEO Sam Reed said: “The acquisition of Protenergy is expected to expand our existing packaging capabilities and enables us to offer customers a full range of soup products, both wet and dry. The addition of Protenergy is also expected to leverage our R&D capabilities in the evolution of shelf stable liquids from cans to cartons. Lastly, we believe Protenergy’s packaging applications present meaningful growth opportunities in the categories that we already play in today, as well as closely adjacent food and beverage categories.”

Click here for editor Dean Best’s take on the recent M&A activity in the US food sector.

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