Treehouse Foods to Sell Large Portion of Meal Prep Business

TreeHouse Foods Inc. has reached a definitive agreement to sell a significant portion of its meal preparation business to Investindustrial for $950 million.

"Today's announcement reflects the board of director's unanimous determination that divesting a significant portion of the meal preparation business for $950 million will deliver greater value for our shareholders than continuing to operate the divested businesses within TreeHouse," said chair of the board, Ann M. Sardini. "This transaction enables us to simplify our business and thus improve operational execution, further enhancing our ability to accelerate growth through category depth in our higher growth and margin snacking and beverages business."

Steve Oakland, chief executive officer and president, said "The positive demand trends for private label are clear and simplifying our business will position us to better capitalize on those trends to drive value now and well into the future. This transaction strengthens our balance sheet, improves execution consistency, and accelerates our ability to invest across snacking and beverage categories that present attractive growth opportunities. Our continued focus on commercial and operational excellence, people and talent, and driving simplification and growth that have been the hallmarks of our successful efforts to transform TreeHouse will remain as we continue our evolution in line with our strategy.

"I want to thank all our employees--particularly the meal preparation team--for their commitment throughout the strategic review process. Investindustrial has a tremendous track record and significant industry experience that will be critical to supporting the future success of our colleagues in the Meal Preparation business as we create robust opportunities for our Snacking and Beverages team."