TreeHouse Foods selling bakery facilities to Rich Products
TreeHouse Foods, Inc. has announced that it entered into a definitive agreement on January 10 to sell two of its facilities located in Fridley, MN and Lodi, CA to Rich Products Corp. The Fridley and Lodi plants manufacture breads, rolls and cakes for retail in-store bakery (ISB) and foodservice customers. The transaction is subject to customary closing conditions and is expected to close by April 10, 2020. Financial terms of the transaction were not disclosed.
“The sale of the Fridley and Lodi facilities allows us to sharpen our focus at TreeHouse, and importantly, creates an opportunity for these plants to thrive under Rich Products' ownership,” said Steve Oakland, CEO and president, TreeHouse Foods. “We continue to be committed to delivering great customer service within the in-store bakery category through our frosted sugar cookies and Lofthouse branded business.”
“The facilities we are acquiring from TreeHouse enhance our current dessert and bakery product portfolios and align well with our long-term growth strategies,” said Ray Burke, president and chief operating officer, Rich’s, U.S.-Canada region. “These added capabilities will also allow us to provide greater fully finished and artisan product options, which are in high demand among our customers.”
TreeHouse acquired the ISB business from ConAgra Brands as part of the Private Brands transaction in 2016. There are approximately 338 hourly and 45 salaried employees who will transition from TreeHouse Foods to Rich Products. Both companies are committed to a smooth transition for employees, customers and consumers.