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Tully & Holland advises Cains Foods on sale to TreeHouse Foods

Tully & Holland has acted as exclusive financial adviser to Cains Foods on its definitive sale agreement with TreeHouse Foods, an Oak Brook, Illinois food manufacturer.

Cains, based in Ayer, Massachusetts, manufacturers shelf stable mayonnaise, dressings and sauces sold under the Cains, Naturally Delicious, and Olde Cape Cod brands, and a broad array of private label products for leading food service distributors, national chains and retailers. TreeHouse has agreed to pay USD35m in cash for the business, subject to adjustments for working capital and taxes. The transaction is expected to close within 30 days.
 
"As a privately-owned food manufacturer, who has been regularly approached by private equity and strategic buyer interest over the years, it was important to us that the new owner understand the business and be eager to grow it," says Denis Keaveny, Cains Foods president and chief executive.  "We are pleased that TreeHouse Foods, one of the nation’s leading food manufacturers, fits this profile."
 
The transaction will augment TreeHouse’s private label salad dressing business, the largest manufacturer of such products in the US and Canada.
 
"Cains will be a great fit within the TreeHouse family, rounding out our industry leading assortment of pourable and spoonable dressings," says Sam K Reed, chairman and chief executive of TreeHouse Foods.
 
For nearly 100 years, Cains has maintained its corporate headquarters in New England. Today, the company’s facilities include its Ayer, Mass.-based owned food processing plant and leased distribution facility, currently employing approximately 100 people.       
 
Tully & Holland acted as the exclusive financial adviser to Cains in its sale to TreeHouse.
 
"This transaction culminates a 15 year relationship with Cains ownership and management team," says Tim Tully, president of Tully & Holland. "Having assisted Cains in the earlier acquisitions of the Olde Cape Cod Brand and The Westminster Cracker Company, followed by the divestiture of Westminster eight years later, this transaction is representative of the deep understanding and sophistication that characterizes our work on behalf of leading industry players in the sectors we serve. These multi-year, multi-assignment relationships with privately-held consumer product companies is what distinguishes us as a firm and which makes our work so rewarding."

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