Will TreeHouse Foods (THS) Stock Be Helped By This Acquisition Speculation?

NEW YORK (TheStreet) -- TreeHouse Foods  (THS), a private label food maker, is said to be in "late-stage" talks with Flagstone Foods, a dried fruit and nuts manufacturer, regarding the acquisition of the company for between $800 million and $900 million, Reuters reports.

TreeHouse Foods announced earlier this year that it is looking to expand its non-branded food business, but sources speaking with Reuters urge caution regarding the Flagstone purchase and say negotiations are yet to be finalized.

Shares of TreeHouse Foods closed lower by -0.32% to $78.36 on Thursday.

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Separately, TheStreet Ratings team rates TREEHOUSE FOODS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate TREEHOUSE FOODS INC (THS) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

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