NEW YORK (TheStreet) -- TreeHouse Foods(THS) - Get Report stock is advancing 9.02% to $73.39 on heavy trading volume on Thursday afternoon after the company announced it will offer up to $750 million in common stock.
The food manufacturer intends to sell about 11.54 million shares of common stock, priced at $65 per share, during the public offering to raise funds to acquire ConAgra Foods' (CAG) private label business.
The offering, which includes a 30-day option for the underwriters to buy an additional 1.73 million shares, is expected to close on Monday.
In November, Oak Brook, IL-based TreeHouse agreed to pay $2.7 billion to acquire the private brands business from ConAgra.
The private label unit generated about $3.6 billion in sales for the year ended May 31, 2015, which will boost TreeHouse's pro forma sales to nearly $7 billion.
The transaction is expected to be close in the first quarter of 2016.
So far today, 6.18 million shares of TreeHouse have exchanged hands, compared with its average daily volume of 587,253 shares.
Separately, TreeHouse has a "buy" rating and a letter grade of B- at TheStreet Ratings because of the company's revenue and earnings per share growth, reasonable valuation levels, good cash flow from operations, and largely solid financial position.
You can view the full analysis from the report here: THS
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.