US-based TreeHouse Foods to explore strategic alternatives

TreeHouse Foods, a US-based manufacturer and distributor of private label foods and beverages, said that its board of directors has sanctioned a plan to explore strategic alternatives.

The alternatives include a potential sale of the company or a deal to enable it to concentrate on its higher growth snacking and beverages business by selling a substantial part of its meal preparation business.

According to TreeHouse Foods, the move follows its ongoing, board-led strategic review which was launched earlier this year.

The company will continue with Evercore as its financial advisor and Sidley Austin LLP and Gibson Dunn as legal counsel to help in studying the alternatives.

Ann M. Sardini — Chair of TreeHouse Foods board said: “The Board’s decision to explore strategic alternatives follows careful consideration as well as engagement with many of our shareholders over the past year.

“The TreeHouse team has executed a major transformation since 2018, improving the ability to support its private label customers and navigate a challenging operating environment. This progress and the strong long-term consumer demand trends for private label provide a favorable backdrop as the Board thoroughly reviews and considers strategic options with a commitment to maximizing value for all shareholders.”

TreeHouse Foods said that it cannot give any assurance on the exploration of strategic alternatives leading to a deal or other strategic changes or results. The company added that it does not have a timetable as of now for the conclusion of the strategic review.

Steve Oakland — President and CEO of TreeHouse Foods said: “We continue to be confident in our ability to capitalize on the strong long-term fundamentals of our business. We remain committed to serving our customers and supporting our employees as the Board conducts this review.

“We are proud of the progress we have made to improve our efficiency and the actions we are taking to drive growth, optimize our portfolio and support our customers.”

Based in Illinois, TreeHouse Foods operates in 29 product categories across a couple of divisions and has nearly 40 production facilities in North America and Italy.

In June 2021, the company sold its ready-to-eat cereal business to Post Holdings for $85 million.