TreeHouse Foods to sell SIF business to Riverbend Foods

TreeHouse Foods has agreed to sell its Soup and Infant Feeding (SIF) business in the US to Riverbend Foods, a portfolio company of Insight Equity.

Reporting sales of $210m last year, the business producescondensed and ready-to-serve soups, baby food and gravy packaged in cans, glass jars and Tetra Recart formats.

TreeHouse Foods chairman and CEO Sam Reed said: "As we continue to deliver on our promise of transformation and shareholder value creation, it is important that we focus our portfolio and enhance our approach toward resource allocation.

"This strategic transaction allows us to simplify our business and concentrate our efforts toward more dynamic categories that support our customers' corporate brand initiatives while offering consumers the best balance of both quality and cost."

The SIF business and the Pittsburgh facility were acquired by TreeHouse Foods from Del Monte Foods in 2006.

Insight Equity partner Jack Waterstreet said: "The acquisition of Soup and Infant Feeding presents a unique opportunity to acquire a food manufacturing platform with numerous attractive growth opportunities.

"We believe the business has opportunities in its existing categories, as well as attractive adjacent categories, and we are delighted to welcome the Soup and Infant Feeding business to our portfolio."

TreeHouse Foods’ Tetra aseptic carton business is not included in the sale.

Subject to customary closing conditions, the transaction is expected to be completed between second and third quarter of this year.