TreeHouse Foods is selling its snack division to a private investor for just over 10% of what it paid to buy it five years ago.
The division, which mostly makes nuts, trail mixes and other healthy snacks for private label, will go to private-equity company Atlas Holdings LLC for $90 million. The deal is expected to close in the third quarter.
TreeHouse acquired the snack division by paying $860 million to buy Flagstone Foods in 2014. It was part of an acquisition binge that saw TreeHouse, one of the biggest U.S. private-label manufacturers, spend more than $1 billion in 11 weeks.
These days, under new management, TreeHouse is going in the opposite direction. The company announced the sale of its breakfast cereal division to Post Holdings in May. TreeHouse has reported net losses in each of the last three fiscal years.
