Private equity firm to buy TreeHouse unit for $950 million

LUXEMBOURG — European non-public fairness agency Investindustrial is increasing its presence in america with the acquisition of two companies, together with one deal that’s anticipated to create one of many largest suppliers of personal label meals merchandise on this planet.

First, the funding firm has agreed to accumulate important parts of the meal preparation enterprise of TreeHouse Meals, Inc. for roughly $950 million. TreeHouse Meals’ meal preparation portfolio contains center-of-the-store and entree meal gadgets in shelf-stable and refrigerated codecs for retail, foodservice and industrial clients. Purposes embrace single-serve espresso, powdered creamer, refrigerated dough, dressings, dips, sauces, dry dinners, sizzling cereals, pasta, salsas, syrups, pasta sauces, jams and jellies, pickles, and cheese sauces.

The enterprise operates 14 manufacturing amenities ,throughout america, Canada and Italy in addition to 19 company-operated distribution facilities, and is anticipated to generate roughly $1.6 billion in revenues in 2022.

Investindustrial mentioned the enterprise will stay headquartered in Chicago.

The meal preparation enterprise is anticipated to be mixed with La Doria, a European producer of personal label preserved greens, peeled and chopped tomatoes, fruits juices and pasta sauces, to create one of many largest suppliers of personal label meals merchandise on this planet, Investindustrial mentioned. Investindustrial acquired La Dorie in October 2021.

“We’re delighted so as to add the divisions of TreeHouse Meals’ meal preparation enterprise to our portfolio of main non-public label meals firms,” mentioned Andrea C. Bonomi, chairman of the economic advisory board at Investindustrial. “We perceive that success within the meals enterprise requires us to offer our clients with the most effective service in addition to high-quality merchandise at an ideal worth. With this acquisition, we’ll construct on our status as an {industry} chief in buyer excellence whereas persevering with to enhance service ranges, product improvement, and operational efficiencies.”

The announcement comes two days after executives at Oak Brook, In poor health.-based TreeHouse reasserted their intention to divest a “good portion” of the meal preparation enterprise section in favor of its snacking and beverage unit. The corporate first introduced its intent to explore options for the divestment of the meal preparations enterprise unit in March, which adopted a strategic assessment that started in November 2021.

“Investindustrial is the best associate for our industry-leading meal preparation enterprise,” mentioned Steven T. Oakland, president and chief govt officer of TreeHouse. “Their conviction within the alternative that lies forward for meal preparation is a testomony to the energy of that enterprise, its sturdy non-public label classes and the groups that assist it. We sit up for seeing the enterprise thrive nicely into the longer term.”

Investindustrial additionally introduced it has acquired Parker Meals Group from The Riverside Co. Headquartered in Fort Value, Texas, Parker Meals Group develops and manufactures specialty, value-added substances within the North American market, with a give attention to inclusions and toppings.

Monetary phrases of the transaction weren’t disclosed.

Parker Meals Group’s portfolio contains baked inclusions, toppings, crumbs/streusels, pralines and cookie parts which are offered to industrial branded business-to-consumer clients, foodservice shoppers and industrial business-to-business clients. The corporate employs 370 at three manufacturing amenities situated in Mexico, Mo.; Perry, NY; and Fort Value.

Investindustrial mentioned it plans to fold Parker Meals Group into its broader group of meals substances firms, together with CSM Substances (acquired in April 2021), Hello-Meals and Italcanditi.

“Our in depth expertise within the meals substances sector and our observe document of rising our portfolio firms, makes us the proper steward for a brand new, thrilling and extra international chapter in PFG’s improvement,” Mr. Bonomi mentioned. “We’re constructing an IngredientTech platform with the imaginative and prescient to create distinctive and revolutionary options for the meals {industry}. PFG will change into a part of and contribute to our household of present substances investments with CSM Substances, Hello-Meals and Italcanditi.”

Gregg Hodder, CEO of Parker Meals Group, added, “With robust expertise within the sector, Investindustrial is our associate of alternative and with its assist as a accountable investor and sector specialist, we sit up for accelerating PFG’s progress and getting into into new markets.” Source

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