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Investindustrial agrees $950m carve out deal for TreeHouse’s meal prep business

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Italian buyout house Investindustrial has agreed to acquire significant portions of the meal preparation business of TreeHouse Foods Inc for $950m, representing 13.6x its 2022 estimated EBITDA.

It was reported in June that the deal could value the unit at a $1.3bn valuation.

The transaction will consist of $530m in cash and $420m in senior secured debt to be provided by TreeHouse.

The transaction covers the unit’s production of pasta, pourable and spoonable dressing, preserves, red sauces, syrup, dry blends and baking, dry dinners, pie filling, pita chips and other sauces. It is expected to generate $1.6bn of net sales and $70m of adjusted EBITDA this year.

Andrea C. Bonomi, chairman of the Industrial Advisory Board of Investindustrial, said, “We are delighted to add the divisions of TreeHouse Foods’ meal preparation business to our portfolio of leading private label food companies. We understand that success in the food business requires us to provide our customers with the best service as well as high quality products at a great value.

“With this acquisition, we will build on our reputation as an industry leader in customer excellence while continuing to improve service levels, product development, and operational efficiencies.”

Evercore served as financial advisor to TreeHouse and Gibson Dunn served as legal advisor.

Investindustrial closed its seventh flagship fund on its €3.75bn hard cap in December 2019.

It agreed to sell its stake in cocoa supplier and chocolate maker Natra to fellow private equity house CapVest last month.

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