Investindustrial has acquired TreeHouse Foods, Inc. for $2.9 billion, aiming to revitalize the company and enhance its focus on high-margin product categories amidst a competitive private-label market.

Information on the target

TreeHouse Foods, Inc., headquartered in Oak Brook, Illinois, is the largest manufacturer of private-label products in the United States. The company has established partnerships with major grocery retailers, including Walmart, Amazon, Kroger, and Trader Joe’s, providing a wide range of food and beverage products under various store brands. Recently, TreeHouse has faced significant challenges, with its stock value plummeting from an all-time high of $104.35 in 2016 to just $24.43 prior to its acquisition by Investindustrial.

In an effort to streamline operations and focus on high-growth, high-margin categories, TreeHouse has undergone a series of strategic divestitures and restructurings. This includes the sale of its Lakeville, Minnesota manufacturing facility and snack bar business for $63 million in 2023, as well as the sale of a majority stake in its meal-prep business to Investindustrial for $950 million in 2022.

Industry overview in the target’s specific country

The consumer packaged goods (CPG) industry in the United States has been experiencing a transformative phase, particularly in the private-label segment. Over the past few years, private-label brands have gained significant traction among consume