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TreeHouse Foods announced on December 11, 2020 that it has completed the acquisition of the majority of Ebro’s Riviana Foods U.S. branded pasta business for $242.5 million in cash.
The Company expects the acquisition to be accretive by $0.20 to $0.30 per share in the first full year. Normalized revenue for the acquired pasta business is expected to be between $170 and $180 million and normalized EBITDA is projected to be between $25 and $30 million, pre-synergies. Because the acquisition was structured as an asset purchase, TreeHouse expects to realize approximately $40 million in cash tax benefits on a net present value basis.
The acquisition included the following regional pasta brands: Skinner, No Yolks, American Beauty, Creamette, San Giorgio, Prince and Light 'n Fluffy, Mrs. Weiss', New Mill, P&R Procino-Rossi and Wacky Mac, as well as the St. Louis manufacturing facility, which employs approximately 90 people.
TreeHouse funded the acquisition and related fees and expenses with cash on hand.
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