Treehouse Foods Sold to European Investment Firm for $950 Million

*Treehoue Foods, aka “the Pasta Plant” in Excelsior Springs, MO (photo S Jason Cole).*

On Thursday it was announced that Treehouse Foods will sell a significant portion of its meal preparation business to European investment firm, Investindustrial for $950 Million. Treehouse is selling/divesting itself of 14 facilities across the United States, including the facility here in Excelsior Springs. In their press release and Webcast/Conference Call Treehouse CEO Steve Oakland discussed the company’s move away from meal preparation staples such as pasta in order to capitalize on the growth of the “snacking and beverages business.” Treehouse Foods Chair of the Board of Directors, Ann M. Sardini made clear the move was about maximizing profit for the company’s shareholders stating, “Today’s announcement reflects the Board of Directors’ unanimous determination that divesting a significant portion of the Meal Preparation business for $950 million will deliver greater value for our shareholders than continuing to operate the divested businesses within TreeHouse.”

*A slide from the Treehouse Investor Presentation showing the changes resulting from the sale including the transfer of 14 production facilities.*

While the transition to new ownership is unnerving for some local employees, it appears as though operations could continue in a similar, if not better fashion. According to supplied documentation, “Investindustrial is a leading European group of independently managed investment, holding and advisory companies with €11 billion of raised fund capital… Investindustrial has an over 30-year history of providing mid-market companies capital, industrial expertise, operational focus, and global platforms to accelerate sustainable value creation and international expansion.” A certified B corporation, Investindustrial has included in its mission firm values of supporting people and the environment. On their website, they state, “The most important asset is our people and the experiences we accumulate as a team… strong and supportive relationships, whether with our managers, investors, team or our broader community, form the bedrock for our success.” The combined revenues and global reach of the acquisitions from Treehouse combined with La Doria, one of Investindustrial’s portfolio companies and a leading European manufacturers of private label preserved vegetables, peeled and chopped tomatoes, fruit juices and pasta sauces, will create one of the largest suppliers of private label food products in the world.

Treehouse CEO, Mr. Oakland also gave an indication that Investindustrial would continue operations at meal preparation facilities such as the one in Excelsior Springs, as normal saying, “I want to thank all our employees, particularly the Meal Preparation team, for their commitment throughout the strategic review process. Investindustrial has a tremendous track record and significant industry experience that will be critical to supporting the future success of our colleagues in the Meal Preparation business as we create robust opportunities for our Snacking and Beverages team.”

The full joint press release issued by Investinternational:

The Excelsior Citizen has reached out to both Investindustrial and Treehouse Foods for more information about the future of the Excelsior Springs facility and we will provide updates as they are made available.