TreeHouse Foods has entered into an agreement to sell its Soup and Infant Feeding business to Riverbend Foods, a newly formed platform company of Insight Equity. The transaction is expected to close in the second or third quarter of 2017.
The Soup and Infant Feeding (SIF) business is a maker of private label condensed and ready-to-serve soup, baby food and gravy packaged in cans, glass jars and Tetra Recart formats (Tetra Recart is a type of packaging shaped as a rectangular cube that takes up to 40% less space than cans and glass jars). Total revenues of the business were approximately $210 million in 2016. SIF is based in Pittsburgh.
TreeHouse Foods acquired the SIF business and its Pittsburgh facility from Del Monte Foods in 2006. Approximately 400 hourly and 60 salaried employees will transition from TreeHouse Foods to Riverbend. TreeHouse Foods will retain its Tetra aseptic carton business, which includes broth and other products that are produced in another location.
“The acquisition of Soup and Infant Feeding presents a unique opportunity to acquire a food manufacturing platform with numerous attractive growth opportunities,” said Jack Waterstreet, Partner at Insight Equity. “We believe the business has opportunities in its existing categories as well as attractive adjacent categories, and we are delighted to welcome the Soup and Infant Feeding business to our portfolio.”
Insight Equity makes control investments in middle market, asset intensive companies across a range of industries and specializes in partnering with companies in complex and challenging situations, including corporate divestitures, aggressive growth opportunities, restructurings, and transitions from private family ownership. The firm is based near Dallas in Southlake, TX and also has an office in New York (www.insightequity.com).
TreeHouse Foods (NYSE: THS) is a manufacturer of packaged foods and beverages with more than 50 manufacturing facilities across the United States, Canada, and Italy that focuses primarily on private label products for both retail grocery and food away from home customers. The company had revenues in 2016 of $6.2 billion and is headquartered in Oak Brook, IL (www.treehousefoods.com).
Harris Williams & Co. served as the financial advisor to TreeHouse Foods.
© 2017 Private Equity Professional | April 26, 2017
