Oak Brook, Ill.-based TreeHouse Foods Inc. said Aug. 1 it completed the sale of its snacks division, comprising its Flagstone Foods Inc. business and its Linette Quality Chocolates Inc. unit, to private equity firm Atlas FRM LLC for $90 million.
Flagstone Foods, headquartered in Minnesota, sells private label healthy snacks in North America, while Billerica, Mass.-based Linette Quality Chocolates manufactures dry roasted and oil roasted products, as well as baking and snack nuts.
The sale is subject to customary closing conditions and post-closing adjustments. The new stand-alone company will be named Flagstone Foods.
"Accomplishing a clean sale for TreeHouse allows us to immediately focus our efforts, pay down debt, have a healthier margin structure and improve our ability to drive shareholder value over time," said TreeHouse Foods CEO Steve Oakland.
Willkie Farr & Gallagher LLP acted as legal adviser to Atlas, according to data from S&P Global Market Intelligence.