TreeHouse Foods, Inc., an Oak Brook, Ill.-based manufacturer of private label and products, is broadening its canopy. The company has completed the acquisition of the non-direct store delivery coffee business and coffee facility of Farmer Brothers Coffee.
By taking on the plant in Northlake, Texas, TreeHouse Foods now offers roasting, grinding, flavoring and blending capabilities. The company already supplies single-serve coffee pods and ready-to-drink coffees, and has worked with Farmer Brothers Coffee before to supply its bulk ground coffee. Through the deal, TreeHouse acquired about $30 million of inventory and will retain 180 facility team members to support the operations.
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Founded in 1912, Farmer Brothers Coffee is a coffee roaster, wholesaler, equipment servicer and distributor. The company produces a wide-ranging line of coffees, hot and iced teas, spices and baking/biscuit mixes.
"I want to welcome the newest members of our coffee team," said Steve Oakland, chairman, CEO and president of TreeHouse Foods. "Acquiring the Northlake, Texas, facility enables us to drive greater category depth through green coffee purchasing, roasting, grinding, flavoring and assortment – and represents an exciting step forward as we strengthen our strategic capabilities as a focused, private label snacking and beverages leader. By becoming more vertically integrated in coffee, we are better positioned to drive mutually profitable growth for our customers and deliver greater value to our shareholders."
Earlier this summer, TreeHouse Foods affirmed its full year outlook, anticipating net sales growth of 6-8%, representing a range of $3.66 million to $3.73 million. It also shared growth targets for 2024 to 2027, including a goal of 3-5% revenue growth and an 8-10% adjusted EBITDA growth. Aligning with the acquisition of Farmer Brothers Coffee, the company aims to drive category depth and leadership in high-appeal categories.