Oak Brook, IL—TreeHouse Foods, Inc. announced in a press release that it has entered into a definitive agreement to sell their Snacks Division to Atlas Holdings LLC.

The Snacks Division, the press release says, is “one of the largest manufacturers and distributors of private label healthy snacks to premier retail customers in North America,” and a leader in the nuts and trail mix categories. It currently operates four plants, although one is scheduled to close by the end of the third quarter, and is not included in the transaction.

Atlas has agreed to pay $90 million for the division, the release says, subject to post-closing adjustments, which TreeHouse plans to use to pay down debt. TreeHouse projected the division to generate net sales of approximately $670 million in 2019.

The transaction is expected to close in the third quarter of 2019. TreeHouse will update its full-year guidance to reflect this in its second quarter earnings announcement.

Steve Oakland, CEO and president of TreeHouse Foods, said in the release: "This transaction allows the Snacks Division to unlock its potential and serve its customers even better under Atlas' ownership. We are grateful for the hard work put forth by the Snacks team during these last several years."

Michael Sher, partner of Atlas Holdings, said in the release: “This Snacks business will be a welcome addition to the Atlas family of manufacturing and distribution companies. Customers are consistently choosing private label brands, and this business is a premier manufacturer with unique growth potential.  We're excited to partner with this team to deliver the finest healthy, private label snacks in the industry."