TreeHouse Foods is exploring new opportunities for growth, as the company recently announced its Board of Directors has approved plans to explore strategic alternatives in order to maximize company value. These initiatives include the possible sale of the company or a transaction to allow it to focus on its growth in the snacking and beverage sectors through the divestment of a significant portion of its Meal Prep business.
"We continue to be confident in our ability to capitalize on the strong long-term fundamentals of our business," commented Steve Oakland, President and Chief Executive Officer. "We remain committed to serving our customers and supporting our employees as the Board conducts this review. We are proud of the progress we have made to improve our efficiency and the actions we are taking to drive growth, optimize our portfolio, and support our customers."
According to a press release, this determination by the Board follows the provider's ongoing strategic review, which began earlier this year. The company has retained Evercore as its financial advisor and Sidley Austin LLP and Gibson Dunn as its legal counsel to assist with the exploration of alternatives.
TreeHouse Foods has not set a timetable for the conclusion of its review and does not intend to comment further on the matter until the Board has approved a specific course of action, or otherwise determined that further disclosure is appropriate or required by law.
"The Board's decision to explore strategic alternatives follows careful consideration as well as engagement with many of our shareholders over the past year," Ann M. Sardini, Chair of the Board, said. "The TreeHouse team has executed a major transformation since 2018, improving the ability to support its private label customers and navigate a challenging operating environment. This progress and the strong long-term consumer demand trends for private label provide a favorable backdrop as the Board thoroughly reviews and considers strategic options with a commitment to maximizing value for all shareholders."
TreeHouse Foods has demonstrated its commitment to shareholder value creation by taking action to execute value-enhancing transactions, optimize the business, and maintain a disciplined capital allocation approach. Since 2016, the company has reduced its total debt by over $800 million, in addition to making strategic investments to strengthen its foundation and support categories that generate growth and profitability.
As the company explores ambitious strategies to continue its growth in the industry, Deli Market News will keep an eye out for its next move.