Private Label Buyer

TreeHouse Foods To Acquire Sturm Foods

December 21, 2009

TreeHouse Foods, Westchester, Ill., said it signed a definitive agreement to acquire Manawa, Wis.-based Sturm Foods, a private label manufacturer of hot cereal and powdered soft drink mixes, from HM Capital Partners LLC and other shareholders. The transaction is valued at $660 million, with closing expected by March 31, 2010.

TreeHouse Foods said the acquisition will significantly strengthen its presence in private label dry grocery, expand EBITDA margins and enhance cash flows, as well as improve the Company's R&D, packaging, mixing and flavoring capabilities.

"Sturm Foods is a significant addition to TreeHouse, both strategically and financially," said Sam K. Reed, chairman and CEO of TreeHouse Foods. "Sturm will give us the leadership position within the private label hot cereal and powdered soft drink mix categories. Both categories are large and growing, offer health and convenience benefits, and have significant private label shares of 26 percent and 20 percent, respectively."