TreeHouse Foods Inc., which produces non-dairy creamers and sweeteners, cereals, teas, cheeses and other items, is continuing to expand its portfolio while gaining access to the healthy snack food sector through the acquisition of private-label trail mix maker Flagstone Foods for $860 million in cash from Gryphon Investors and other shareholders. Flagstone Foods is the number one company in the country in the trail mix and dried fruit category, and posted sales of $697 million at the close of its last fiscal year. Flagstone was formed by Gryphon in 2010 when it bought and combined the private-label trail mix maker Ann’s House of Nuts and the private-label dried fruit company America Importing Co. In the past three years Flagstone has seen a top line growth of 24% per annum and margin expansion, and TreeHouse expects that following the acquisition, its annual sales will reach $3.5 billion. The deal is expected to close in the third quarter of 2014.
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