TreeHouse Foods sells soup, infant feeding business to Riverbend Foods
TreeHouse Foods has entered into a definitive agreement to sell its Soup and Infant Feeding (SIF) business to Riverbend Foods, a newly formed portfolio company of Insight Equity, a private equity firm.
TreeHouse Foods has entered into a definitive agreement to sell its Soup and Infant Feeding (SIF) business to Riverbend Foods, 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.
“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.”
TreeHouse Foods acquired the Soup and Infant Feeding business and the 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 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.