Investindustrial to buy significant portion of TreeHouse Foods’ meal prep division

Investindustrial has agreed to acquire a significant portion of TreeHouse Foods’ meal preparation business for $950 million.

The business is a US supplier of private-label food products, including pasta, red sauces, salsa, salad dressings, mayonnaise, condiments, syrup, pie-fillings and preserves. It operates 14 manufacturing facilities in the US, Canada and Italy, as well as 19 distribution centres, and is expected to generate approximately $1.6 billion in revenue in 2022.

Investindustrial says that the combined revenues and global reach of the business and its existing portfolio company, La Doria, “will create one of the largest suppliers of private-label food products in the world”.

Andrea 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 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, CEO and president of TreeHouse Foods, added: “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.”

The acquisition is expected to close in the fourth quarter.