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TreeHouse Foods to Sell Significant Portion of Meal Preparation Business for 950M; Steve Oakland and Ann M. Sardini Discuss

TreeHouse Foods to Sell Significant Portion of Meal Preparation Business for 950M; Steve Oakland and Ann M. Sardini Discuss


OAK BROOK, IL
Monday, August 15th, 2022

TreeHouse Foods is simplifying its operations with a new strategy, creating valuable new opportunities for category growth. In a recent divestment, the supplier has revealed a $950 million agreement to sell a significant portion of its Meal Preparation business to Investindustrial.

Steve Oakland, Chief Executive Officer and President, TreeHouse Foods"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," Steve Oakland, Chief Executive Officer and President commented. "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."

According to a press release, the divested Meal Preparation business is expected to generate 2022 net sales and adjusted EBITDA of approximately $1.6 billion and $70 million, respectively.

TreeHouse Foods has revealed a $950 million agreement to sell a significant portion of its Meal Preparation business to Investindustrial

The categories to be divested include pasta, pourable and spoonable dressings, preserves, red sauces, syrup, dry blends and baking, dry dinners, pie filling, pita chips, and other sauces.

"I want to thank all our employees, particularly the Meal Preparation team, for their commitment throughout the strategic review process," Oakland continued. "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."

This transaction will allow TreeHouse Foods to strengthen its balance sheet, improve execution consistency, and accelerate its ability to invest across the snacking and beverage categories

The transaction is expected to close in the fourth quarter of 2022 and is subject to customary closing conditions and regulatory approvals.

"Today's announcement reflects theAnn M. Sardini, Chair of the Board, TreeHouse Foods Board of Directors' 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," noted 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."

To read more about this recent transaction, click here.

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