Farmer Brothers announces agreement to sell direct ship business and Northlake, Texas facility to TreeHouse Foods
The company expects to use the proceeds from the sale to pay down outstanding debt associated with its asset-based lending (ABL) and retire its term loan. The sale will increase Farmer Brothers’ balance sheet flexibility and allow it to focus on execution, improving margins and driving strategic growth in the direct store delivery (DSD) and key account sales channels.
“Exiting the direct ship space will allow us to focus almost exclusively on DSD, which is our most profitable and highest growth potential business, while also assuring our valued direct ship customers are well-served by a national leader,” said
The sale is subject to customary closing conditions and is currently expected to close within the next 60 days. It will include the transition of approximately 180
At closing,
“Our shift to a DSD-focused organization will allow us to further increase internal efficiency, decrease our operational cost and allow us to enjoy higher margins,” said
About
Founded in 1912,
Headquartered in
About TreeHouse Foods
TreeHouse Foods, Inc. is a leading private label food and beverage manufacturer in
Additional information, including TreeHouse's most recent statements on forms 10-Q and 10-K, may be found at treehousefoods.com.
Forward-looking statements
This press release and other documents we file with the
Factors that could cause actual results to differ materially from those in forward-looking statements include, but are not limited to, the risk that the transaction may not be completed in a timely manner or at all, the failure to meet the closing conditions, the occurrence of any event, change or other circumstances that could give rise to a termination of the definitive agreement in respect of the sale, the expected use of proceeds, statements regarding the achievement of the anticipated benefits of the sale, including expected results following the sale, the risk that any announcements relating to the sale could impact the market price of the Company’s common stock and the risk that the sale and its announcement could have an adverse effect on the ability of the parties to retain customers and retain and hire key personnel and maintain relationships with their suppliers, distributors and customers, as well as other risks, uncertainties and assumptions described from time to time in our filings with the
Given these risks and uncertainties, you should not rely on forward-looking statements as a prediction of actual results. Any or all of the forward-looking statements contained in this press release and any other public statement made by us, including by our management, may turn out to be incorrect. We are including this cautionary note to make applicable and take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for forward-looking statements. We expressly disclaim any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, changes in assumptions or otherwise, except as required under federal securities laws and the rules and regulations of the
Investor relations contact
Ellipsis
Investor.relations@farmerbros.com
646-776-0886
Media contact
Director of Communications
405-885-5176
bwessel@farmerbros.com
Source: Farmer Bros. Co.