SOUTHLAKE, TEXAS — Riverbend Foods L.L.C., a newly formed portfolio company of Southlake-based private equity firm Insight Equity, has entered into a definitive agreement to acquire the Soup and Infant Feeding business of TreeHouse Foods, Inc. Financial terms were not disclosed.
Soup and Infant Feeding is based in Pittsburgh and manufactures private label condensed and ready-to-serve soup, baby food and gravy. The business had sales of approximately $210 million in 2016. The transaction is expected to close in the second or third quarter of 2017.
|Sam K. Reed, chairman and c.e.o.of TreeHouse Foods|
“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 chief executive officer 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.”
TreeHouse Foods acquired the Soup and Infant Feeding business and the Pittsburgh facility from Del Monte Foods, Inc. in 2006. Approximately 460 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 at another site.
|Jack Waterstreet, partner at Insight Equity|
“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.”Oak Brook, Ill.-based TreeHouse Foods recorded a net loss of $228,594,000 in fiscal 2016 (year ended Dec. 31), which compared with net income of $114,910,000, or $2.67 per share on the common stock, in the previous fiscal year. The company posted net sales of $6,175,088,000 for the fiscal year, up 93% from $3,206,405,000 in the previous fiscal year. At the beginning of 2017, the company reorganized its business into five divisions: baked goods, condiments, meals, snacks and beverages.