Treehouse Foods, a leading manufacturer and distributor of private label foods and beverages, has announced that it has come to an agreement with Investindustrial to sell a part of its meal preparation business for $950 million.
In a statement, Treehouse Foods said the deal was intended to “simplify” its business proceedings and allow it to focus its efforts on other areas.
Commenting on the move, Treehouse Foods CEO Steve Oakland, said “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”.
The $950 million transaction is comparable to nearly 14 times Treehouse’s earnings, before interest, taxing and such, for the 2022 year, the company added. The amount is divided into several parts, including $530 million in cash and $420 million in senior secured debt set to be due by 2027.
Sources: Treehouse Foods (via PR Newswire)