TreeHouse Plans Another Store Brand Acquisition

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March 30, 2010

TreeHouse Foods CEO Sam Reed said he expects store branded food sales to continue to grow and hopes to make another store brand manufacturer acquisition by the middle of next year, according to a Dow Jones Newswire report.

Reed explained that Treehouse –– whose business is focused on store brand sauces, canned soup and salad dressing –– has credit available that cold support a deal as large as $200 million.

Last December, the Westchester, Ill.-based company acquired Sturm Foods, a manufacturer of store brand hot cereal and powdered soft drink mixes, for $660 million. The Sturm acquisition makes TreeHouse the leader in the private-label hot cereal and powdered soft-drink mix categories, giving it market share of 26 percent and 20 percent, respectively, according to Reed.

"While there will be more disposable income, you'll see the growth of private label foods will continue on the same steady course," Reed told Dow Jones.

Late last year, Reed, a former Keebler executive, said the company identified a dozen private-label acquisition targets that would enable the company to develop premium store

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