Private label foods manufacturer TreeHouse Foods will be acquired for $2.9 billion by an arm of a European investment group, company officials announced Monday.
Industrial F&B Investments III Inc., a subsidiary of Investindustrial VIII SCSp, intends to pay TreeHouse shareholders $22.50 per share in cash for each share of common stock owned at closing, which would translate to an equity value of $1.2 billion.
TreeHouse shareholders would also receive one non-transferable “contingent value right” per share, which could result in potential proceeds related to “certain ongoing litigation relating to part of TreeHouse Foods' coffee business.” TreeHouse sued Keurig Dr. Pepper’s coffee subsidiary more than a decade ago over claims that it had monopolized the market for single-serve coffee brewers and pods.
TreeHouse officials said that the company’s board has unanimously approved the acquisition. The deal is expected to close in the first quarter of next year, pending approval by TreeHouse shareholders and antitrust regulators.
Following the closing of the deal, Investindustrial’s North American portfolio would span 85 manufacturing facilities and some 16,000 employees.
“We have long admired TreeHouse Foods and have tremendous respect for Steve [Oakland] and the entire team, who have built a dynamic snacking and beverage leader and supply chain partner to blue-chip retail, food service and food-away-from-home customers across North America,” Andrea Bonomi, chairman of Investindustrial’s industrial advisory board, said in a statement. “We are confident in the long-term growth opportunities in private brands and the categories where TreeHouse Foods operates, as well as the company's ability to build on its strong foundation of leadership.”
