TreeHouse Up 5% #PreMarket On Flagstone Foods Acquisition

TreeHouse Foods THS shares have gained more than five percent in pre-market trading on news it will acquire Flagstone Foods for $860 million in cash from Gryphon Investors and other shareholders.

Acquisition of Flagstone, a private-label snack maker, will add $0.05 to $0.08 per share to TreeHouse's 2014 earnings; for the first full year following closing, add $0.24 to $0.28 per share, Treehouse said.

Following the transaction, TreeHouse's pro forma annual sales are expected to approach $3.5 billion, with adjusted earnings before interest, taxes and depreciation and amortization of more than $450 million, TreeHouse said.

TreeHouse had sales last year of $2.29 billion.

The deal is expected to close in the third quarter and will be financed through a combination of borrowings under TreeHouse's existing credit facility and a $325 million equity issuance.

TreeHouse changed hands recently at $83.98 per share, up 5.12 percent.