US-based packaged foods manufacturer TreeHouse Foods has completed the divestiture of its snack nuts and trail mix business to Atlas Holdings for $90m.
The Flagstone Foods division manufactures and distributes private label healthy snacks in North America. Its product range includes nut, trail mix and dried fruits.
TreeHouse Foods president and CEO Steve Oakland said: “I believe that the sale to Atlas best positions the Snacks division for success.
“Accomplishing a clean sale for TreeHouse allows us to immediately focus our efforts, pay down debt, have a healthier margin structure and improve our ability to drive shareholder value over time.”
With its headquarters in Minneapolis, Minnesota, Flagstone Foods will have a workforce of more than 800 people at its three production facilities located in Robersonville, North Carolina, El Paso, Texas, and Dothan, Alabama.
Atlas has appointed Robert Scalia as Flagstone Foods CEO, who previously spent 25 years in leadership roles at General Mills, Nabisco, Kraft Foods and Hershey.
Atlas Holdings partner Michael Sher said: “We are very excited to partner with the strong team at Flagstone Foods, and to welcome Bob Scalia as our CEO.
“Consumers are consistently choosing private label brands from grocers, clubs and retailers they trust. Under Bob’s leadership, we believe Flagstone will build upon its already strong market presence and become the ‘go-to’ healthy snacks company to meet that growing consumer demand.”
Last month, TreeHouse Foods entered a definitive agreement to sell its snacks division to Atlas Holdings.
TreeHouse intends to use net proceeds from the divestment to reduce its debt.
The snacks division is projected to generate net sales of nearly $670m this year.
