London-based non-public fairness agency Investindustrial has acquired TreeHouse Meals, Inc., the most important US producer of private-label merchandise, in a $2.9 billion deal that takes the corporate non-public.
The all-cash deal merges TreeHouse with Industrial F&B Investments III, Inc., a subsidiary of Investindustrial. Oak Brook, In poor health.-based TreeHouse will proceed because the surviving company, TreeHouse mentioned.
The acquisition follows a bumpy decade for TreeHouse, which has seen its inventory worth crater from an all-time excessive of $104.35 in 2016 to $24.43 previous to the acquisition.
The information has business specialists speculating on whether or not the acquisition is the start of a renewed wave of M&A exercise in CPG.
TreeHouse Meals’ struggles
The meals and beverage retailer model large works with the most important grocers within the nation, together with Walmart, Amazon, Kroger and Dealer Joe’s, however over the past decade, TreeHouse has been in belt-tightening mode.
In 2023, TreeHouse offered its Lakeville, Minn., manufacturing facility and snack bar enterprise to John B Sanfilippo & Son for $63 million, and introduced plans to restructure the corporate to deal with high-growth, high-margin classes.
Following a string of destructive quarters in 2022, TreeHouse offered a majority stake of its meal-prep enterprise to Investindustrial for $950 million. In 2021, TreeHouse offered its ready-to-eat cereals enterprise to Submit Holdings in 2021 for $85 million.
TreeHouse has continued the reorganization, closing its Chicago pickle plant in 2025 and shedding 80 staff, in response to Powder & Bulk journal.
Investindustrial’s flip within the Treehouse
Grocery marketing consultant Phil Lempert, generally known as the “Grocery store Guru,” mentioned Investindustrial is “going to have to actually trim bills to be able to be the [private label] chief they need to be.”
Conagra offered its private-label enterprise to TreeHouse in 2016 for $2.7 billion, “and so they’ve been struggling ever since,” in response to Lempert.
“Whereas non-public manufacturers have soared, TreeHouse actually hasn’t performed in addition to they need to have,” Lempert mentioned. “It’s most likely as a result of overpaying for Conagra’s property.”
Investindustrial faces a giant problem within the more and more aggressive private-label business, in response to Lempert.
“For the reason that pandemic there have been loads of smaller private-label firms which have targeted on working for extra revolutionary, more healthy meals start-ups which might be extra nimble and have decrease overhead,” Lempert mentioned. “That’s actually the place there was great development. The previous mannequin that Tree Home relies on is excessive quantity for main manufacturers and retailers. I’m undecided that works anymore.”
Extra M&A to return?
Trade analysts speculate that the deal may spark extra mergers and acquisitions exercise within the meals and beverage sector.
International technique and supply-chain marketing consultant Brittain Ladd referred to as the acquisition “a strategically wise buyout as a result of it delivers quick worth to shareholders at a premium, and it offers Investindustrial a foothold in a resilient shopper class.”
“I anticipate that InvestIndustrial will align TreeHouse’s technique for long-term operational enchancment,” he added.
Traders, producers and supply-chain stakeholders within the meals and beverage business are watching intently, in response to Ladd.
“The transfer displays broader consolidation traits in shopper packaged items and private-label manufacturing,” he mentioned. “When you’re watching the place non-public fairness is deploying capital in meals and retail provide chains, it is a notable instance. I consider this acquisition will generate comparable M&A within the business.”
The remark echoes a 2025 William Blair report that speculates the difficult economic system might be a “silver lining” for M&A exercise.
William Blair Companion and Analysis Analyst Jon Andersen mentioned within the report that valuations of CPG staple firms “are far more enticing” now than a 12 months in the past.
“There was extra M&A within the business as evidenced by latest offers together with Investindustrial’s deliberate buy of TreeHouse Meals, Kimberly-Clark’s acquisition of Kenvue, Keurig Dr. Pepper’s transaction for JDE Peets, PepsiCo’s buy of Poppi and Siete Meals and Hershey’s acquisition of Lesser Evil,” he wrote.
