NYSE-listed TreeHouse Foods has completed its acquisition of Harris Tea for approximately $205 million, the US multinational food producer announced on Friday (Jan. 3). The acquisition, first announced in December 2024, includes Harris Tea’s facilities in Moorestown, New Jersey, and Marietta, Georgia, along with about 300 employees.
Harris Tea is a US private label tea producer with a diverse portfolio of brands, including Red Rose, Salada, Southern Breeze, Tea India, Wonder Drink Kombucha and Newman’s Own Organic tea. The company was established in 1981,
“The acquisition of Harris Tea is a good use of our balance sheet strength, bringing a fast-growing, margin-accretive business into TreeHouse Foods, and giving us an immediate leadership position in private label tea,” TreeHouse Foods Chairman, CEO and President Steve Oakland said in a statement. “Harris Tea’s capabilities in tea sourcing, blending and packing, as well as its scale, industry expertise, and customer relationships, fit our strategy well” he added.
The Illinois-based company funded the acquisition of Harris Tea primarily with cash on hand and expects the acquisition to be accretive to revenue and profitability in 2025. As previously disclosed, the purchase price equals roughly 8.5x trailing-twelve-month adjusted EBITDA, or 6.5x net of synergies and the net present value of future tax benefits.
TreeHouse Foods Chairman, CEO and President Steve Oakland (Credit: TreeHouse Foods)
TreeHouse Foods, a private food brand manufacturer supplying most local grocery stores and e-commerce channels across North America, is reiterating its 2024 full-year guidance, including the expectation of sequential improvement in volume growth and profit margin in Q4 2024.
In Q3 2024 the company’s financial results showed mixed performance with adjusted net sales of $854 million, slightly below its guidance.
The acquisition comes as the company navigates a challenging market environment and amid the broader industry trend of consolidation and expansion within the food and beverage sector. Companies seek to enhance their product offerings and market reach, focusing on their financial health.
TreeHouse Foods at a Glance
Founded: 2005 Headquarters: Oak Brook, Illinois, US Production Facilities: 26 (US & Canada) Number of employees: 7,500
