Flagstone Foods’ MN Presence Intact After $860M Sale
Flagstone Foods, which announced Monday plans to be sold for $860 million, is reportedly staying in Minnesota after the deal closes.
Flagstone, which purchases, prepares, packages, and distributes over 1,500 varieties of snacks to retailers throughout North America, is based in St. Paul and operates a packaging and distribution facility in Minneapolis.
When the snack food company said it was going to be sold to Illinois-based TreeHouse Foods, Inc., the fate of its nearly 600 Minnesota employees was unclear.
However, the Pioneer Press reported Thursday that the company’s full leadership team will remain intact and will continue to be based in St. Paul and that TreeHouse has no plans to consolidate or relocate any of the acquired company’s 500 employees that work at its Minneapolis facility.
Flagstone was sold by San Francisco-based private equity firm Gryphon Investors. Gryphon created Flagstone in 2010 when it combined Ann’s House of Nuts—which marketed trail mix and snack nuts—and American Importing Company (Amport)—which manufactured and marketed dried fruits.
In 2012, Flagstone moved its headquarters to downtown St. Paul and received $80,000 from the St. Paul Housing and Redevelopment Authority as an incentive to bring corporate jobs to the city. The money constituted a forgivable loan that didn’t have to be repaid if the company brought in 40 jobs within a year, which it did.
Flagstone reported sales of $697 million in 2013 and employs 1,365 across its St. Paul headquarters and at facilities in Minneapolis and Roberson, North Carolina.
TreeHouse, also a healthy snack maker, is based in Oakbrook, Illinois. The company said that after it acquires Flagstone, it expects its annual sales to reach nearly $3.5 billion, with profits of more than $450 million.