TreeHouse Foods Inc., a leading private brands snacking and beverage manufacturer, has announced its acquisition of Harris Tea, the private label tea business of Harris Freeman & Co., for approximately $205 million. The deal, advised by Gibson Dunn & Crutcher LLP for TreeHouse Foods and Holland & Knight LLP for Harris Tea, is expected to close in the first quarter of 2025.

Strategic Fit and Growth Potential

TreeHouse Foods’ chairman, CEO, and president, Steve Oakland, hailed the acquisition as a strategic move to solidify the company’s presence in the growing tea category.

“The acquisition of Harris Tea strengthens our competitive positioning in the fast-growing tea category and adds unique blending and sourcing capabilities that customers desire,” Oakland said. “This aligns with our long-term strategy to build capabilities in higher-growth, higher-margin categories.”

Harris Tea’s established expertise in tea blending and private label branding is expected to bolster TreeHouse Foods’ leadership in the sector, contributing depth and scale to its portfolio.

Details of the Acquisition

The $205 million deal includes Harris Tea's manufacturing facilities in Moorestown, New Jersey, and Marietta, Georgia, along with its workforce of approximately 300 employees, who will transition to TreeHouse Foods. Funding for the transaction will primarily come from TreeHouse Foods’ existing cash reserves.

Harris Tea, founded in 1981, has built a reputation as a dominant private label tea producer in the U.S., featuring brands like Wonder Drink Kombucha, Newman's Own Organic Tea, Red Rose, and Southern Breeze. The company describes itself as "the largest producer" of private label teas in the U.S.

Leadership Comments and Future Growth

Kevin Shah, co-CEO of Harris Freeman, emphasized the alignment between the two companies’ capabilities and long-term goals.

“The tea category presents significant opportunity for future growth,” Shah said. “TreeHouse Foods provides a great fit for our next chapter of growth, and I am confident this transaction will maintain our upward trajectory.”

The acquisition is expected to enhance vertical integration within TreeHouse Foods’ tea business, creating synergies that will boost growth and margins, according to the company’s statement.

Legal Teams Leading the Transaction

The acquisition was guided by top legal advisors from both sides. Holland & Knight LLP advised Harris Tea, led by partner Colby Smith. Gibson Dunn & Crutcher LLP represented TreeHouse Foods, with a team led by partners Jonathan Whalen and Jeffrey Chapman, alongside tax partner Michael Cannon, benefits partner Krista Hanvey, IP partner Danial Angel, and commercial transactions partner Kari Krusmark.