TreeHouse Foods Expands With Acquisition Of Protenergy

By Karla Paris

Acquisition of innovative manufacturer presents growth opportunities in closely adjacent food and beverage categories with product packaging and private label offering

TreeHouse Foods announced on April 21 that it will acquire Protenergy Natural Foods, a developer and manufacturer of food and beverage products, namely private label broth, soups, and gravies.  TreeHouse has agreed to pay Whitecastle Investments Limited, Whitecap Venture Partners, and others approximately $150 million in cash for the business, subject to an adjustment for working capital. 

Through the acquisition, TreeHouse Foods is expanding its existing packaging abilities and its product offerings to more consumers.  In an official statement regarding the acquisition, Sam Reed, chairman, president, and CEO of TreeHouse Foods, notes “the company believes that other segments of the soup, broth, gravy, and sauce categories will follow a growth trajectory of broth in cartons as aseptic packaging has transformed broth from a private label laggard to a customer brand growth engine.”  Reed went on to note that roughly 70 percent of broth is now packaged in cartons and private labels' share of that business is growing.  Early estimates show that TreeHouse Foods will:

• Increase annual revenue by approximately $200 million
• Position TreeHouse at the forefront of evolution from cans to carton packaging (aseptic and recart) for broth, soup, sauces, and other shelf stable liquids
• Present growth opportunities into closely adjacent food and beverage categories for the company through new packaging applications

Protenergy’s facility offers a variety of carton formats that TreeHouse Foods plans to utilize, ranging in size from 340 ml (12 oz) to 2 L (64 oz). The facility currently produces:

• Both high and low acid products in Tetra Aseptic and Tetra Recart
  With Tetra Recart, products traditionally sold in cans and bottles such as beans, vegetables, and thick soups can be sterilized inside the carton — offering shelf stability for up to 24 months. Additionally, the square design of the packaging allows for maximum brand impact and printing on all sides.  The lower package weight is ideal for consumer handling and the product is easy to store and safe to open.
   
• Aseptic process and packaging
  For its fast production times, extended shelf life and cost-saving efficiencies it is the first choice for forward-thinking manufacturers.