OAK BROOK, Ill., April 25, 2017 /PRNewswire/ -- TreeHouse Foods, Inc. (NYSE: THS) today announced that it has entered into a definitive agreement to sell its Soup and Infant Feeding (SIF) business to Riverbend Foods LLC, a newly formed portfolio company of Insight Equity, a private equity firm. The SIF business is based in Pittsburgh, Pa. and is a leading manufacturer of private label condensed and ready-to-serve soup, baby food and gravy packaged in cans, glass jars and Tetra Recart® formats. Sales of the business were approximately $210 million in 2016. The transaction will have a negligible impact on the ongoing operating income of TreeHouse Foods. Financial terms of the sale were not disclosed. The transaction is subject to customary closing conditions and is expected to close in the second or third quarter of 2017.

"As we continue to deliver on our promise of transformation and shareholder value creation, it is important that we focus our portfolio and enhance our approach toward resource allocation," said Sam K. Reed, Chairman and CEO of TreeHouse Foods. "This strategic transaction allows us to simplify our business and concentrate our efforts toward more dynamic categories that support our customers' corporate brand initiatives while offering consumers the best balance of both quality and cost."

"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."

TreeHouse Foods acquired the Soup and Infant Feeding business and the Pittsburgh facility from Del Monte Foods, Inc. 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. Both TreeHouse Foods and Insight Equity are committed to a smooth transition for employees, customers and consumers.

Harris Williams & Co. served as financial advisor and Winston & Strawn as legal advisor for TreeHouse Foods. Hunton & Williams LLP served as legal advisor to Insight Equity.

ABOUT INSIGHT EQUITY

Insight Equity (www.insightequity.com) makes control investments in strategically viable, middle-market manufacturing and distribution businesses across a wide range of industries.  Leveraging a proven, collaborative value creation model, Insight Equity facilitates operating enhancements and growth. The firm specializes in partnering with companies in complex or challenging situations, including corporate divestitures, management buyouts, aggressive growth opportunities, going-private transactions, restructurings, and transitions from family ownership.  Insight Equity's headquarters is located near the Dallas / Ft. Worth International Airport in Southlake, Texas. The firm also has an office in New York City.

ABOUT TREEHOUSE FOODS

TreeHouse Foods, Inc. 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. We manufacture shelf stable, refrigerated, frozen and fresh products, including beverages and beverage enhancers (single serve beverages, coffees, teas, creamers, powdered beverages, and smoothies); meals (cereal, pasta, macaroni and cheese, and side dishes); retail bakery (refrigerated and frozen dough, cookies, and crackers); condiments (pourable and spoonable dressing, dips, pickles, soups, and sauces) and healthy snacks (nuts, trail mix, bars, dried fruits, and vegetables). We have a comprehensive offering of packaging formats and flavor profiles, and we also offer natural, organic, and preservative free ingredients in many categories. Our strategy is to be the leading supplier of private label food and beverage products by providing the best balance of quality and cost to our customers.

Additional information, including TreeHouse's most recent statements on Forms 10-Q and 10-K, may be found at TreeHouse's website, http://www.treehousefoods.com.

FORWARD-LOOKING STATEMENTS

This press release contains "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements and other information are based on our beliefs as well as assumptions made by us using information currently available. The words "anticipate," "believe," "estimate," "project," "expect," "intend," "plan," "should," and similar expressions, as they relate to us, are intended to identify forward-looking statements. Such statements reflect our current views with respect to future events and are subject to certain risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected, or intended. We do not intend to update these forward-looking statements following the date of this press release.

Such forward-looking statements, because they relate to future events, are by their very nature subject to many important factors that could cause actual results to differ materially from those contemplated by the forward-looking statements contained in this press release and other public statements we make. Such factors include, but are not limited to: the outcome of litigation and regulatory proceedings to which we may be a party; the impact of product recalls; actions of competitors; changes and developments affecting our industry; quarterly or cyclical variations in financial results; our ability to obtain suitable pricing for our products; development of new products and services; our level of indebtedness; the availability of financing on commercially reasonable terms; cost of borrowing; our ability to maintain and improve cost efficiency of operations; changes in foreign currency exchange rates; interest rates; raw material and commodity costs; changes in economic conditions; political conditions; reliance on third parties for manufacturing of products and provision of services; general U.S. and global economic conditions; the financial condition of our customers and suppliers; consolidations in the retail grocery and foodservice industries; our ability to continue to make acquisitions in accordance with our business strategy or effectively manage the growth from acquisitions; and other risks that are set forth in the Risk Factors section, the Legal Proceedings section, the Management's Discussion and Analysis of Financial Condition and Results of Operations section, and other sections of our Annual Report on Form 10-K for the year ended December 31, 2016, and from time to time in our filings with the Securities and Exchange Commission. You are cautioned not to unduly rely on such forward-looking statements, which speak only as of the date made when evaluating the information presented in this press release. TreeHouse expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein, to reflect any change in its expectations with regard thereto, or any other change in events, conditions or circumstances on which any statement is based.

SOURCE TreeHouse Foods, Inc.

Related Links

http://www.treehousefoods.com