Oakbrook, IL — TreeHouse Foods, Inc. has acquired Flagstone Foods, which makes private-label healthy snacks, from Gryphon Investors and other shareholders for $860 million, the company reports.
With 2013 sales of $697 million, the St. Paul, MN-based producer of snack nuts and mixes, trail mixes, dried fruits and wholesome snacks, and its plants in North Carolina and Minnesota will expand TreeHouse’s presence into the healthy food market. The transaction is expected to close in third-quarter 2014.
Describing the acquisition as “an attractive new platform for entering the $7.1 billion healthy snacks category,” Sam K. Reed, TreeHouse chairman, president and CEO, noted: “Flagstone Foods has demonstrated a capacity to broaden its product offering with existing customers, expand into new categories through innovation and achieve new customer wins.”
Flagstone has 1,365 employees in its headquarters and production operations.