Non-public equity firm to invest in TreeHouse unit for $950 million

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LUXEMBOURG — European private equity firm Investindustrial is expanding its existence in the United States with the acquisition of two corporations, such as one particular offer that is predicted to create one particular of the most significant suppliers of non-public label foods solutions in the earth.

Very first, the expense enterprise has agreed to get major parts of the food preparing business of TreeHouse Food items, Inc. for about $950 million. TreeHouse Foods’ meal preparing portfolio includes center-of-the-retail store and entree meal goods in shelf-secure and refrigerated formats for retail, foodservice and industrial customers. Applications contain one-serve coffee, powdered creamer, refrigerated dough, dressings, dips, sauces, dry dinners, warm cereals, pasta, salsas, syrups, pasta sauces, jams and jellies, pickles, and cheese sauces.

The business operates 14 producing amenities ,across the United States, Canada and Italy as well as 19 corporation-operated distribution centers, and is expected to create about $1.6 billion in revenues in 2022.

Investindustrial said the enterprise will continue being headquartered in Chicago.

The meal preparing business enterprise is anticipated to be mixed with La Doria, a European maker of non-public label preserved veggies, peeled and chopped tomatoes, fruits juices and pasta sauces, to make a single of the largest suppliers of private label food stuff items in the world, Investindustrial claimed. Investindustrial acquired La Dorie in October 2021.

“We are delighted to insert the divisions of TreeHouse Foods’ meal preparing company to our portfolio of top private label food providers,” mentioned Andrea C. Bonomi, chairman of the industrial advisory board at Investindustrial. “We fully grasp that achievements in the food items business calls for us to supply our buyers with the most effective company as well as significant-quality merchandise at a excellent worth. With this acquisition, we will make on our reputation as an business chief in shopper excellence even though continuing to make improvements to service degrees, merchandise development, and operational efficiencies.”

The announcement comes two days following executives at Oak Brook, Ill.-primarily based TreeHouse reasserted their intention to divest a “significant portion” of the food planning business enterprise segment in favor of its snacking and beverage device. The enterprise first announced its intent to investigate possibilities for the divestment of the meal preparations organization unit in March, which adopted a strategic critique that commenced in November 2021.

“Investindustrial is the suitable associate for our sector-main meal preparing small business,” mentioned Steven T. Oakland, president and chief executive officer of TreeHouse. “Their conviction in the opportunity that lies in advance for food preparing is a testomony to the strength of that business, its strong personal label groups and the groups that aid it. We appear ahead to observing the business thrive effectively into the long term.”

Investindustrial also announced it has obtained Parker Food stuff Group from The Riverside Co. Headquartered in Fort Really worth, Texas, Parker Food stuff Group develops and manufactures specialty, price-added ingredients in the North American current market, with a concentrate on inclusions and toppings.

Economic conditions of the transaction had been not disclosed.

Parker Foodstuff Group’s portfolio features baked inclusions, toppings, crumbs/streusels, pralines and cookie factors that are bought to industrial branded business enterprise-to-client buyers, foodservice clientele and industrial small business-to-business shoppers. The company employs 370 at three manufacturing services positioned in Mexico, Mo. Perry, NY and Fort Well worth.

Investindustrial stated it ideas to fold Parker Foodstuff Group into its broader team of foods elements companies, which includes CSM Elements (acquired in April 2021), Hello-Foodstuff and Italcanditi.

“Our comprehensive working experience in the foodstuff elements sector and our keep track of file of escalating our portfolio businesses, would make us the great steward for a new, interesting and additional world chapter in PFG’s development,” Mr. Bonomi said. “We are developing an IngredientTech system with the eyesight to build distinctive and ground breaking options for the foods market. PFG will develop into aspect of and lead to our relatives of existing substances investments with CSM Components, Hi-Foodstuff and Italcanditi.”

Gregg Hodder, CEO of Parker Food stuff Team, additional, “With strong encounter in the sector, Investindustrial is our lover of selection and with its assist as a liable trader and sector specialist, we seem forward to accelerating PFG’s development and entering into new markets.” 

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