An investment company indirectly held by Investindustrial VII L.P. has signed a definitive agreement to acquire significant portions of the meal preparation business of TreeHouse Foods Inc., a North American manufacturer and supplier of private label food in center-store categories for retail and foodservice customers.
The business is a leading US supplier of private label food products in its categories, manufacturing and distributing pasta, red sauces, salsa, salad dressings, mayonnaise, condiments, syrup, pie-fillings and preserves, among other products. The business operates 14 manufacturing facilities located in the US, Canada and Italy along with 19 company-operated distribution centers and is expected to generate approximately $1.6 billion revenues in 2022.
The acquisition is expected to close in the fourth quarter and is subject to customary closing conditions and regulatory approvals. The business will remain headquartered in Chicago, IL and will be owned by Investindustrial, an experienced owner in the food and beverage sector with a focus on long-term value creation.
The combined revenues and global reach of the business and La Doria, one of Investindustrial’s portfolio companies and a leading European manufacturer of private label preserved vegetables, peeled and chopped tomatoes, fruit juices and pasta sauces, will create one of the largest suppliers of private label food products in the world.
Andrea C. Bonomi, chairman of the Industrial Advisory Board of Investindustrial, said: “We are delighted to add the divisions of TreeHouse Foods’ meal preparation business to our portfolio of leading private label food companies. We understand that success in the food business requires us to provide our customers with the best service as well as high quality products at a great value. With this acquisition, we will build on our reputation as an industry leader in customer excellence while continuing to improve service levels, product development, and operational efficiencies.”
Steve Oakland, Chief Executive Officer and president of TreeHouse Foods, said: “Investindustrial is the right partner for our industry-leading meal preparation business. Their conviction in the opportunity that lies ahead for meal preparation is a testament to the strength of that business, its robust private label categories and the teams that support it. We look forward to seeing the business thrive well into the future.”
Lazard and Bank of America served as financial advisors to Investindustrial, and Kirkland & Ellis served as legal advisor.
Evercore served as financial advisor to TreeHouse and Gibson Dunn served as legal advisor. Centerview provided a fairness opinion to the Board of Directors of TreeHouse.