Company: THS
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001320695-25-000089
Chunk: 29

Company: TreeHouse Foods, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 1
Chunk 29
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 Company has not recognized any servicing assets or liabilities as of March 31, 2025 or December 31, 2024, as the fair value of the servicing arrangement as well as the fees earned were not material to the financial statements.

5. INVENTORIES March 31, 2025December 31, 2024 (In millions)Raw materials and supplies$232.1 $217.4 Finished goods357.1 321.9 Total inventories$589.2 $539.3 

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TREEHOUSE FOODS, INC.NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

6. ACQUISITIONS Acquisition of Private Brand Tea BusinessOn January 2, 2025, the Company completed the acquisition of certain subsidiaries that operate the private brand tea business of Harris Freeman & Co, Inc. ("Harris Tea"), a leading private brand tea manufacturer in the U.S., for approximately $207.6 million in cash, subject to customary purchase price adjustments. In addition to private brand tea, Harris Tea manufactures specialty retail tea brands and foodservice tea products for the restaurant and hospitality industries. The acquisition aligns with our long-term strategy to build capabilities in our higher-growth, higher-margin categories.The acquisition is being accounted for under the acquisition method of accounting, and the results of operations were included in our Condensed Consolidated Financial Statements from the date of acquisition. Included in the Company’s Condensed Consolidated Statements of Operations are Harris Tea’s net sales of approximately $38.6 million and income before income taxes of $1.9 million from the date of acquisition through March 31, 2025. The Company incurred approximately $3.0 million in acquisition-related costs, of which $0.3 million were incurred during the three months ended March 31, 2025. These costs are included in General and administrative expense of the Condensed Consolidated Statements of Operations.The following table summarizes the preliminary purchase price allocation of the fair value of net tangible and intangible assets acquired and liabilities assumed:(In millions)Cash transferred at close$209.6 Preliminary purchase price adjustment(2.0)Total consideration transferred$207.6 Allocation of consideration to assets acquired and liabilities assumed:Cash $0.3 Receivables11.4 Inventories41.8 Property, plant, and equipment19.0 Operating lease right-of-use assets25.7