TreeHouse Foods has now finalised its acquisition of Harris Tea for approximately $205 million, marking a strategic move to enhance its position in the private label tea market.

The acquisition was first announced in December 2024, the acquisition includes Harris Tea's facilities in Moorestown, New Jersey, and Marietta, Georgia, along with about 300 employees.

The acquisition is expected to bolster TreeHouse's portfolio by integrating Harris Tea's established capabilities in tea sourcing, blending and packing.

Steve Oakland, chairman and CEO of TreeHouse Foods, commented that the acquisition aligns well with the company's strategy and will provide an immediate leadership position in the growing category of private label tea products.

TreeHouse financed the acquisition primarily through cash reserves, with expectations that it will contribute positively to both revenue and profitability in 2025.

The purchase price reflects about 8.5 times the trailing twelve-month adjusted EBITDA or 6.5 times when accounting for synergies and the net present value of future tax benefits.

TreeHouse Foods has reiterated its full-year guidance for 2024, anticipating improvements in volume growth and profit margins as the year progresses.

The integration of Harris Tea is expected to enhance TreeHouse’s operational capabilities and market reach within the beverage sector, particularly in private label offerings.

TreeHouse Foods is a manufacturer of private brands in the North American snacking and beverage markets. The company aims to leverage its strengths to deliver innovative products and services, thereby fostering mutually beneficial growth with its partners.

Image: © Harris Tea website

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