TreeHouse Foods Inc. (NYS:THS) said Thursday it agreed to sell for $950 million a "significant portion" of its Meal Preparation unit to London-based investment firm Investindustrial Advisors Ltd. The Oak Brook, Ill., company did not provide a specific figure on the size of the stake in the business it sold. The purchase price of $950 million amounts to about 13.6 times the Meal Preparation unit's projected 2022 adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) of $70 million. The business is expected to generate about $1.6 billion in sales in 2022. The purchase includes $530 million in cash and $420 million in senior secured debt to be provided by TreeHouse. TreeHouse expects to close the transaction in the fourth quarter. Shares of TreeHouse Foods are up 16.1% in 2022 compared to a 17.8% drop by the Nasdaq (NASDAQ:COMP) .
Aug. 11, 2022, 7:16 a.m. EDT