TreeHouse Foods Inc. said Monday it is buying snack food maker Flagstone Foods for $860 million in cash to expand into healthy foods.
Flagstone makes private-label healthy snacks and is the No. 1 provider of trail mix and dried fruit, TreeHouse said. The snack company, based in St. Paul, Minn., has 1,365 employees and booked sales of $697 million in its 2013 fiscal year.
TreeHouse, which makes non-dairy powdered creamers, cereals, sauces and soups, said the acquisition would diversify its private-label offerings. TreeHouse has purchased about six other food companies over the last four years.
“Flagstone Foods is ideally situated at the...