OAK BROOK, Ill. (AP) — TreeHouse Foods Inc. said Monday that it will acquire mayonnaise, dressing and sauce maker Cains Foods L.P. for $35 million in cash.
Cains, based in Ayer, Mass., is privately owned and generates annual revenue of $80 million. Its products include private label store brands and the Cains, Naturally Delicious and Olde Cape Cod brands. It sells its products to food service distributors, national food chains and retailers.
TreeHouse said the acquisition will round out its assortment of private label dressings. The company said the deal is expected to have no impact on its 2013 earnings but will add 5 cents per share to its 2014 earnings.
Analysts surveyed by FactSet forecast 2014 earnings per share of $3.40, on average.
The transaction is expected to close within 30 days.
TreeHouse, based in Oak Brook, Ill., makes non-dairy powdered creamers, private label canned soups, salad dressings, pickles and other products.
Shares of the company slipped 14 cents to $65 by midday, still a smaller drop than the broader market. Its stock remains at the upper end of its 52-week trading range of $46.15 to $67.53.