The board of TreeHouse Foods will not pursue a sale of the entire company, but will look into divesting its meal preparation business and other moves, company executives said.
TreeHouse had initiated a strategic review last November that looked into various options, including putting the whole company on the sales block. The company released a statement that it has decided not to sell, but to concentrate on core competencies and put other businesses up for sale.
“TreeHouse will continue its exploration of potential divestiture transactions, including the sale of portions of the Meal Preparation business, either in a single transaction or in a series of transactions,” the statement says.
The meal preparation segment is TreeHouse’s largest, with sales of $2.73 billion in fiscal 2021. Products in that segment include dry dinners, refrigerated dough, sauces, pasta and more.
TreeHouse predicts net sales growth of 11% for 2022. Sales in 2021 were $4.33 billion, down 0.5% from 2020. Net income was $12.5 million, down 9% from 2020.