TreeHouse Foods to be taken private in $2.9 billion deal (updated)

TreeHouse Foods

10/11/2025 12:39

Adds analyst comment in paragraph 5

By Sanskriti  Shekhar

Nov 10 (Reuters) - TreeHouse Foods THS.N said on Monday it will be taken private by European investment group Investindustrial in an all-cash deal valuing the packaged food maker at $2.9 billion, sending its shares up 20% in early market trading.

Packaged food makers are facing pressure as consumers shift toward smaller, more affordable pack sizes, looking to stretch their budgets in the face of inflation- and tariff-related uncertainty.

TreeHouse shareholders will receive $22.50 per share in cash and one contingent value right (CVR) per share, which entitles holders to a portion of any potential proceeds from ongoing litigation related to the private-label manufacturer's coffee business.

The offer represents a 38% premium over the closing price on September 26 of $16.30 per share, prior to media reports of a potential take-private deal.

"Likely the best path forward for the company given the still pressured macro and uncertainty around the Food sector," said Jefferies analyst Scott Marks, adding that the persisting challenges around supply chain and volumes make TreeHouse more suited for the private domain.

TreeHouse withdrew its annual forecasts after the deal was announced, and reported third-qaurter net sales at $840.3 million, below Wall Street estimates of $851.1 million, according to data compiled by LSEG.

In 2014, the company filed an antitrust and unfair competition lawsuit against its coffee business rival Keurig Green Mountain, with estimated damages ranging from $719 million to $1.5 billion.

The deal is expected to close in the first quarter of 2026, after which TreeHouse Foods' stock will be delisted from the New York Stock Exchange.

Investindustrial has invested in several other packaged food companies, including U.S.-based private-label manufacturers Winland Foods, as well as Europe-based bakery ingredient suppliers CSM Ingredients and Italcanditi.

 (Reporting by Sanskriti Shekhar in Bengaluru; Editing by Vijay Kishore)

 ((Sanskriti.Shekhar@thomsonreuters.com))