TreeHouse to borrow from credit facility to fund Flagstone Foods buy

By Toni Weeks

San Luis Obispo, Calif., June 30 – TreeHouse Foods, Inc. said it will borrow from its existing credit facility to fund part of its acquisition of Flagstone Foods from Gryphon Investors.

According to a press release, the company will also issue $325 million of equity to fund the $860 million cash transaction.

Following the acquisition, TreeHouse’s pro forma annual sales are expected to approach $3.5 billion, and adjusted EBITDA should exceed $450 million, the release said. The transaction is expected to close during the third quarter of 2014, subject to some customary closing conditions.

TreeHouse is an Oak Brook, Ill.-based food manufacturer. Flagstone Foods is a St. Paul provider of private-label healthy snacks.

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