TreeHouse Foods Inc. plans to sell $325 million of common stock to help pay for its pending acquisition of Flagstone Foods.
The Oak Brook company expects to complete its $860 million purchase of Flagstone during the third quarter. TreeHouse will borrow the remainder of the purchase price under existing credit agreements. The company said underwriters will have an option for 30 days to buy up to $49 million of common shares.
St. Paul, Minnesota,-based Flagstone makes private-label healthy snacks such as trail mix and dried fruit. The company reported sales of $697 million in 2013.
TreeHouse makes grocery and foodservice products such as non-dairy powdered creamers, private-label canned soups, salad dressings and single-serve hot beverages. TreeHouse says the addition of Flagstone will increase annual sales to about $3.5 billion.
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