TreeHouse Foods (NYSE:THS) is buying Farmer Bros’ direct shipping business, as well as its facility located in Northlake, Texas. This will see the company pay Farmer Bros roughly $100 million for the business and location.
Deverl Maserang, President and CEO of Farmer Bros, said the following about the sale to TreeHouse Foods:
“Exiting the direct ship space will allow us to focus almost exclusively on DSD, which is our most profitable and highest growth potential business, while also assuring our valued direct ship customers are well-served by a national leader.”
According to Farmer Bros, the sale will give the company the money it needs to pay down current debts and retire its term loan. It will also improve the company’s balance sheet and give it more leeway to better focus on its direct store delivery () business.
FARM Stock Movement on Wednesday
FARM stock is rallying today alongside heavy trading of its shares. As of Wednesday morning, this has more than 91 million shares changing hands. To put that in perspective, its daily average trading volume is well below that at 73,000 shares.
FARM stock is up 64.5% as of Wednesday morning but still down 30.8% since the start of the year. THS stock is getting a slight boost today from the acquisition news as well.
Investors looking for more of the most recent stock market news are going to want to keep reading!
InvestorPlace is home to all of the hottest stock market coverage traders need to know about on Wednesday! Our coverage includes why shares of GE HealthCare Technologies (NASDAQ:GEHC), Nvidia (NASDAQ:NVDA) and golf stocks are on the move today. You can catch up on all of these matters by checking out the links below!
More Stock Market News For Wednesday
- Is General Electric Giving Up on GEHC Stock?
- Nvidia Director Harvey Jones Just Sold $28 Million of NVDA Stock
- Why Are Golf Stocks Up Today?
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.