Riverbend Foods LLC, backed by Insight Equity, has reached a deal to acquire the soup and infant feeding business of TreeHouse Foods Inc. (NYSE: THS). TreeHouse is divesting the division in order to focus on strategic growth initiatives and its private-label capabilities.
TreeHouse, headquartered in Oak Brook, Illinois, manufactures packaged, private-label foods and beverages for retail grocery and “food away from home” customers. The target’s soup and infant feeding business produces soups, broths, gravies and infant feeding products sold in cans, jars and Tetra Recart cartons. Treehouse, founded in 2005, has more than 50 manufacturing facilities across the U.S., Canada and Italy. The target manufactures frozen and fresh serve beverage, teas, smoothies, cereal, pasta, dough, cookies, crackers, condiments, and healthy snacks such as trail mix and dried fruits.
Riverbend is a newly formed portfolio company of Insight Equity. As a result of the deal, Riverbend will gain a 625,000 square foot facility based in Pittsburgh, Pennsylvania. Financial terms of the deal were not disclosed. In 2016, the soup and infant business generated approximately $210 million in sales.
Insight Equity is a Southlake, Texas-based private equity firm. The PE firm makes control investments in middle-market manufacturing and distribution businesses across a variety of industries. The firm has the capabilities to execute corporate divestitures, management buyouts, aggressive growth opportunities, going-private transactions, restructurings and transitions from family ownership.
Recent food deals include: Swander Pace Capital’s acquisition of Asian cuisine distributor Passport Food Group; Palladium Equity Partners’ investment in Hispanic food producer Del Real Foods; Findus Spain’s purchase of La Cocinera, a Barcelona, Spain-based maker of chilled-dough products, from Nestle; Diaz Foods’ acquiring La Cena Fine Foods Ltd., a manufacturer of Caribbean food brands pasta, drinks and condiments; Grey Mountain Partners’ purchase of Mediterranean food maker Kronos Foods Inc.; and Ajinomoto’s $800 million purchase of Windsor Quality Holdings LP, a maker of nacho bites and other appetizer frozen foods. Harris Williams & Co. served as financial adviser to TreeHouse.